Chapter 8 Entrepreneruship IT

Which of the following is not a basic financial document that entrepreneurs use to track their businesses?

• income statement

• cash flow statement

• balance sheet

• market share statement

The last line of an income statement shows a business's ________.

• gross profit or gross loss

• profit or loss

• net profit or net loss

• gross margin

In the income statement, EBIT minus interest costs equals ________.

• gross profit

• pre-tax profit

• net profit

• COGS

An income statement shows whether the difference between revenues (sales) and expenses (costs) is a profit or a ________.

• loss

• net profit

• breakeven

• semi-loss

Ideally, you want to have a positive "double" bottom line. This means ________.

• you are achieving twice the revenues you expected

• you have twice the number of customers that you expected

• you have twice the profit you expected

• your profit allows you to stay in business and achieve your mission

Owner's equity is also called ________.

• debt

• assets

• liabilities

• net worth

Cash itself or items that could be quickly turned into cash or will be used within 1 year are called ________.

• liquid assets

• long-term assets

• current assets

• liquid cash

Liabilities that will be paid over a period of more than one year are ________.

• long-term assets

• long-term liabilities

• equity

• None of the above.

Owner's equity consists of ________.

• common equity

• preferred equity

• retained earnings

• All of the above.

What must balance with assets on the balance sheet?

• liabilities and owner's equity

• net worth and owner's equity

• capital and owner's equity

• liabilities net profit