Financial Needs Business
Balance Sheet
Income Statement
Financial Future
Meaning of Interest
100
An individual or an organization that provides funds to a business
What is creditor
100
Define Financial Statement
What is specific reports prepared according to accepted accounting standards that provide financial information about an enterprise.
100
Those things that the business owes to others
What is liabilities
100
A projected financial statement for a specific future time period
What is Financial Budget.
100
Define interest.
What is the amount charged to a borrower for the use of the lender’s money.
200
What is a business financial goal?
What is establish direction for the financial plans of a business
200
What does a financial sheet consist of?
What is balance sheet, income statement, cash flow statement
200
Define Cash Flow statement.
What is shows how cash is used by a company during a specific period of time
200
Define Operating Budget
What is projects all income and expenses for the operations of a business for a specific time period
200
What is a discount?
What is the amount of money subtracted from a loan at the time of lending equal to the interest charged by the lender.
300
Define Interest.
What is the amount paid for the privilege of borrowing money.
300
What is the purpose of a balance sheet?
What is identifies assets, liabilities, and equity of a business at a specific date.
300
What is the purpose of a income statement? income statement
What is documents all income and expenses during a period and the resulting profits or losses or provides a view of the financial changes in a business that have occurred during a specific period of time
300
Define Capital Budget
What is a plan to acquire and finance long-term assets of a business
300
The difference in the purchasing power of an amount of money at a future date
What is time value of money
400
Name 3 methods that are used for financing business growth?
What is attracting additional investments, borrowing additional money from creditors, reinvesting profits
400
What is the equation to determine Assets?
What is Assets = Liabilities + Owner’s Equity
400
Define current liabilities and provide an example.
What is those that will be paid for within a year Ex. Short term credit, wages, loans must be repaid quickly
400
Define Trend Analysis
What is examines financial performance over several periods of time
400
What is the formula used to calculate simple interest? Tell what each acronym stand for.
What is i=prt i=interest P=principal r=interest rate t=time(length of the loan or investment in years)
500
What are the 3 main financial needs of a business?
What is meet financial obligations and pay debts, provide competitive rates of return for investors, finance future growth and improvement
500
Define the different parts of Assets and provide and example for each one.
What is current assets a life of less than one year Ex. Cash, inventory, materials, supplies long-term assets have a life of over a year often define the nature of the business Ex. Buildings, land, equipment, patents, investments
500
Define long term liabilities and provide an example.
What is payment will not be made in full for more than one year. Ex. Mortgages, long-term purchase agreements
500
Why are budgets necessary?
Budgets serve as a road map for monitoring business activities and performance.
500
What is the difference between simple and compound interest?
What is simple- the amount of interest is calculated at the end of each year based on the total amount loaned and compound interest -pays interest on both the total amount borrowed and on the amount earned
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