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Financial Statements
Ratios
Budgets
Break Even
Legal Structures & Random
100

What is the formula for owner's equity on the balance sheet? 

Assets - Liabilities


100

A firm has a current ratio of 1.2. Is this firm liquid?

Yes. 
100

Which budget focuses on the revenues of a single enterprise?

enterprise budget

100
If selling price per unit increases, ceteris paribus, the break even quantity will _____________. 

decrease

100

Which legal structure has one owner and unlimited liability?

Sole Proprietorship

200

Which statement shows how much profit a business made during a specific period

Income statement


200

current ratio, quick ratio, and working capital are examples of measures of ___________________.

liquidity

200
T/F. A partial budget considered the entire farm operation

False. 

200

At the break even point, what is the total profit?

$0

200

Who elects the board of directors in a corporation?

Shareholders

300

Which financial statement would you look at to the the current cash balance? 

Balance sheet

300

If a business has $40,000 in TL and $20,000 in OE, what is their debt to equity ratio? 


2

300
Which budget tracks monthly cash receipts and payments?

Cash flow budget

300

If a business sells 500 units at $10 each, and incurs $4,000 in total costs, what is their profit? 

$1,000

300

Which business structure is subject to double taxation?

C corp

400

Which of the following would be considered a noncurrent asset? 

a. cash

b. accounts receivable

c. inventory

d. equipment

d. equipment

400

T/F. A higher quick ratio means better short term liquidity

True

400

A partial budget change increases cost by $1,200 but increases revenue but $1,900. Should you make the change? provide  evidence to support your answer. 

+$700. yes, make the change. 

400

What is the break even quantity if fixed costs are $5,000, variable cost per unit is $4, and the selling price per unit is $9? 

1,000 units

400

A S corp is limited to _________ shareholders

less than 100

500
A farm's income statement shows gross revenue of $200,000, cost of goods sold $95,000, and total operating expenses of $45,000. What is operating profit? 

$60,000

500

A business has profit before taxes of $10,000 and total assets of $100,000. What is its return on investment? 

.1 or 10%
500
You plan to market 7,200 bushels of corn. If projected price is $4.60/bu and marketing costs are $0.23/bu, which is the expected revenue from sales? 

4.60 - 0.23 = $4.37/bu x 7200 bu - $31,464

500

Fixed costs are $18,000, variable costs per unit is $6, and selling price per unit is $11. What is the break even quantity? 

3,600 units (18,000 / (11-6)). 

500

Using market lingo, someone who believes the market price is going to increase in the future can be described as....

a. bullish

b. bearish

c. optimistic

d. pessimistic 

bullish