Entrep Finals Quiz 1

What is a financial statement?

• it measures how well a company generates cash to pay its debt obligations, fund its operating expenses, and fund investments.

• it focuses on a company’s revenues and expenses during a particular period

• it provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.

• are written records that convey the business activities and the financial performance of a company.

Which of the following is an example of asset?

• Electricity

• Mortrage

• Vehicle

Which of the following is an example of a liability?

• Building

• Equipment

• Loan

• Sales

Which of the following is an example of income?

• Sales

• Equipment

• Mortrage

What is the formula for Balance Sheet?

• Assets=(Liabilities+Owner’s Equity)

• Assets=Liabilities-Owner's Equity

• Owner's Equity=(Assets-Liabilities)

• Owner's Equity=(Assets+Liabilities)

What is the formula for Income Statement?

• Net Income=(Revenue−Expenses)

• Net Income=(Revenue+Expenses)

• Assets=(Liabilities+Owner's Equity)

• Assets=(Liabilities-Owner's Equity)

Which of the following statements correctly defines an income statement?

• 1. A financial statement that provides information on a company's financial position at a specific point in time.

• 1. A financial statement that shows a company's revenues, expenses, and net income over a specific period.

• 1. A projection of a company's assets, liabilities, and equity for a future period.

• 1. A summary of a company's cash flows, including operating, investing, and financing activities. 

• 1. A report of a company's historical financial performance in a given year.

It contains the total requirements and deficit / funding gap.

• Financial plan
• Sources of raising funds
• Major assumptions
• Market plan

It contains the assets, expenses, and the working capital of a business plan.

• Sources of raising funds
• Major assumptions 
• Business profile
• Financial plan

What is debt management?

• A strategy for paying off student loans
• A plan for using credit wisely and reducing debt
• A way to increase credit card spending