Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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What is a
one-year accounting period called? a. | fiscal year | c. | balance sheet | b. | financial
forecast | d. | operating
costs | | | | |
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2.
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Which of the
following helps you predict how much money you’ll need and how to control your
spending? a. | budget | c. | asset | b. | cash reserves | d. | owner’s equity | | | | |
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3.
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Cash,
equipment, buildings, supplies, inventory, and land are all examples of this. a. | accounting | c. | financial
plan | b. | assets | d. | budget | | | | |
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4.
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Which is a
report of net income or net loss over an accounting period? a. | financial
forecast | c. | budget | b. | income statement | d. | balance sheet | | | | |
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5.
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What is the
report of the financial state of your business on a certain date called? a. | cash
budget | c. | income
statement | b. | balance sheet | d. | operating budget | | | | |
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Completion
Complete each sentence or
statement.
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6.
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The plan you
create for your income and expenses from the time you start the business to when it makes a profit is
called a(n) ____________________.
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Matching
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Match
each item with the correct statement. a. | asset | f. | net loss | b. | balance sheet | g. | cash reserves | c. | liability | h. | financial
plan | d. | fiscal
year | i. | accounting | e. | financial manager | j. | operating budget | | | | |
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7.
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when a
business’s expenses are greater than the revenue
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8.
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tells you
how much money you need to run your business over a long time
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9.
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person in
charge of a business’s financial planning
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10.
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item of
value your business owns
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11.
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outline of
the expenses, needs, and goals of a business
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12.
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an
accounting period
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13.
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money your
business owes
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14.
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savings kept
on hand to pay operating expenses
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15.
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process of
recording your business’s finances
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16.
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report of
assets, liabilities, and owner’s equity at any given time
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True/False
Indicate whether the sentence or statement is true
or false.
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17.
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One of the
responsibilities of a financial manager is to find additional sources of funds.
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18.
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The first
step in financial management is purchasing assets like equipment and supplies.
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19.
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Your
financial records are confidential so you don’t have to show them to banks or
investors.
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20.
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A cash
budget tells you how much money your business will need over the long run.
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21.
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To run a
business successfully, you must be able to put together a financial plan, budget, and keep track of
your income and expenses.
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