Echnee Week 4

What is a balance sheet and what does it represent?

• A balance sheet is a financial statement that represents a company's assets, liabilities, and equity at a specific point in time.

• A balance sheet is a report on a company's sales performance over a year.

• A balance sheet shows the cash flow of a business during a specific period.

• A balance sheet is a document that outlines a company's marketing strategy.

Why is it important for businesses to maintain liquidity?

• To increase long-term debt obligations.

• To reduce operational costs significantly.

• To enhance employee satisfaction and morale.

• It is important for businesses to maintain liquidity to meet short-term obligations and manage unexpected expenses.

Fixed assets include ____________

• accounts payable, salary, rent

• cash, inventory, accounts receivable

• land and property

Variable expenses are __________

• that stay the same each month

• that rise and fall with the volume of production

• that a company owns

Embezzle means _______

• to take company resources for personal use

• can fight crime

• methods for avoiding crime

Liquidity means ___________

• an amount beyond what is needed

• having a safety reserve of cash

• asset's ability to be converted to cash

Things that go on a cash flow statement are ________

• assets, liabilities and owner's equity

• revenues, cash distributions, dividends to stockholders

• sales revenue, gross margin, net income

A balance sheet follows __________ equation.

• sales volume=liabilities + asset

• liabilities=assets + owner's equity

• assets=liabilities + owner's equity

Cash flow statements record only ___________ .

• all revenues and expenses

• cumulative cash

• payments in cash

Keeping too much money in a cash is __________.

• unproductive

• productive

• insufficient

• excessive