11 Jan An important source

Question 1

2 out of 2 points

The statement of cash flow:

Question 2

2 out of 2 points

A pro forma financial statement means:

Question 3

2 out of 2 points

________ measure the financing supplied by the company’s owners against that supplied by its creditors and serve as a gauge of the depth of a company’s debt.

Question 4

2 out of 2 points

The break-even point occurs where:

.

Question 5

2 out of 2 points

What is the difference between price per unit and variable cost per unit?

Question 6

2 out of 2 points

________ is/are the value of the owner’s investment in the business.

Question 7

2 out of 2 points

A technique that allows the small business owner to perform financial analysis by understanding the relationship between two accounting elements is called:

Question 8

2 out of 2 points

A ratio greater than ________ days would indicate poor collection procedures.

Question 9

2 out of 2 points

The profit and loss statement is also referred as the ________.

Question 10

2 out of 2 points

The ________ is built on the basic accounting equation: Assets = Liabilities + Owner’s Equity.

Question 11

2 out of 2 points

________ tell whether or not the small business will be able to meet its maturing obligations as they come due.

Question 12

2 out of 2 points

________ ratios tell whether or not the small company will be able to meet its maturing obligations as they come due.

Question 13

2 out of 2 points

________ ratios measure the financing supplied by business owners and that supplied by the firm’s creditors.

Question 14

2 out of 2 points

________ ratios help a business owner evaluate the company’s performance and indicate how effectively the business employs its resources.

Question 15

2 out of 2 points

________ ratios indicate how efficiently the small firm is being managed.

Question 16

2 out of 2 points

A bank account that technically never has funds in it but is tied to another master account so that when checks are presented for payment the master account is debited, permitting the company to use its own money during the “float” period, is called a(n):

Question 17

2 out of 2 points

Exchanging goods and services for other goods and services, or ________, is an effective way for a small business to conserve cash.

Question 18

2 out of 2 points

When investing surplus cash, the small business owner’s key objectives should be:

Question 19

2 out of 2 points

________ is the money that moves through the business in a continuous cycle.

Question 20

2 out of 2 points

The budgeting strategy that evaluates the necessity of every item on the budget each year by starting with a zero in each budget category is called:

Question 21

2 out of 2 points

The most important item on the balance sheet is:

Question 22

2 out of 2 points

Once a small business has established a firm written credit policy and communicated it, the next step in building an effective credit policy is to:

.

Question 23

2 out of 2 points

________ companies are most likely to suffer cash shortages.

Question 24

2 out of 2 points

________ is simply a “cash map” which shows the amount and the timing of cash receipts and cash disbursements over time.

Question 25

2 out of 2 points

The first step to building a workable credit policy is:

Question 26

2 out of 2 points

Once a credit account becomes past due, a small business owner should:

Question 27

2 out of 2 points

The “big three” of cash management include:

Question 28

2 out of 2 points

An important source of credit information that collects information on small businesses that other reporting services ignore is:

Question 29

2 out of 2 points

The Fair Debt Collection Practices Act prohibits business owners from:

Question 30

2 out of 2 points

When it comes to trade credit, the small business owner: