Financial Statements 1
Financial Statements 2
Business Costs
Business costs 2
Promotion
100
Which statement defines a balance sheet? 1-A financial statement that shows how a business balances its payroll 2-A financial statement that shows how much a business has earned or lost over a period of time such as a year 3-A financial statement that shows the flow of money in and out of the business 4-A financial statement that shows what a business owns, what it owes and how much it is worth at a particular point in time
4-A financial statement that shows what a business owns, what it owes and how much it is worth at a particular point in time
100
Which would NOT be considered a fixed expense? 1-Alarm system 2-Loan payment 3-Rent 4-Utilities
4-Utilities
100
A local doughnut shop incurs a number of expenses during the month to keep the business running. Which is an expense that will change from week to week or month to month? 1-Cost of baking ingredients 2-Insurance fees 3-Office salaries 4-Rent payments
1-Cost of baking ingredients
100
Initial inventory for the business is which type of cost? 1-Fixed cost 2-Personal cost 3-Start-up cost 4-Variable cost
3-Start-up cost
100
The outline of promotional activities for a new business before its opening is a/n: 1-Advertising plan. 2-Ongoing plan. 3-Preopening plan. 4-Promotional plan.
3-Preopening plan.
200
Land, buildings, furniture, and equipment are: 1-Current assets. 2-Fixed assets. 3-Intangible assets. 4-Other assets.
2-Fixed assets.
200
Expenses are BEST described as the: 1-Cost of goods sold. 2-Cost of merchandise. 3-Cost of rent. 4-Cost of running a business.
4-Cost of running a business.
200
Buoy’s Restaurant sets aside $400 a month to cover unexpected expenses. This represents a/n: 1-Contingency fund. 2-Inventory account. 3-Personal savings account. 4-Start-up fund.
1-Contingency fund.
200
A short-term loan is repayable in: 1-One year. 2-Two years. 3-Five years. 4-Twenty-five years.
1-One year.
200
Approximately how long before the opening of a new business should promotional activities begin? 1-Three weeks 2-Six weeks 3-Three months 4-Six months
2-Six weeks
300
The amount of money left after all the costs and expenses for the specific period of time have been deducted from the income is: 1-Balance. 2-Net assets. 3-Net income. 4-Net worth.
3-Net income.
300
Which is NOT an example of variable costs? 1-Advertising 2-Hourly wages 3-Loan payment 4-Travel
3-Loan payment
300
Expenses that do NOT remain the same from month to month are: 1-Fixed costs. 2-Fixed revenue. 3-Variable costs. 4-Variable sales.
3-Variable costs.
300
One advantage of entering into a partnership with people or with other companies having compatible goods is that a partnership: 1-Increases the borrowing power of the business. 2-Provides tax savings over a proprietorship. 3-Provides unlimited liability. 4-Reduces the amount of interest on loans.
1-Increases the borrowing power of the business.
300
Which is a disadvantage of television advertising for a small business? 1-Frequency of exposure 2-High cost 3-Low cost 4-Timeliness
2-High cost
400
The monetary value of the business is its: 1-Balance. 2-Net assets. 3-Net income. 4-Net worth.
4-Net worth.
400
The price the retailer pays for the merchandise sold is: 1-Cost of goods sold. 2-Gross sales. 3-Net sales. 4-Retail price.
1-Cost of goods sold.
400
Deposits paid prior to opening the business to connect utility services for a new business are considered: 1-Fixed costs. 2-Living expenses. 3-Start-up costs. 4-Variable expenses.
3-Start-up costs.
400
A line of credit is: 1-A prearranged loan at an established rate available whenever the business owner needs it. 2-An interest-free loan. 3-An unsecured loan. 4-Funding that requires no collateral.
1-A prearranged loan at an established rate available whenever the business owner needs it.
400
Agencies, means, or instruments used to deliver promotional messages to the public are known as: 1-Advertising. 2-Media. 3-Promotion. 4-Sales promotion.
2-Media.
500
Anything of value that a business owns is a/n: 1-Asset. 2-Expense. 3-Fixed cost. 4-Liability.
1-Asset.
500
Which is an example of a financial obligation that a business would expect to take more than one year to repay? 1-Electricity bill 2-Mortgage 3-Printing coupons 4-Travel expense
2-Mortgage
500
Miscellaneous expenses incurred by the entrepreneur for clothing, travel and entertainment are: 1-Fixed costs. 2-Income. 3-Personal expenses. 4-Start-up expenses.
3-Personal expenses.
500
Funding that is borrowed from family or friends is sometimes called: 1-Collateral. 2-Debt funding. 3-Free money. 4-Love money.
4-Love money.
500
Which is an example of sales promotion? 1-Billboard advertising 2-Coupons 3-News release 4-Telemarketing
2-Coupons
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