Question 1

The financial structure of a firm remains unchanged as business activities occur.

Accepted Answer

A) True 
 B)False

Question 2

_____ is the difference between revenue earned and expenses incurred.

Accepted Answer

A)  Profit 
B)  Liability 
C)  Gap ratio 
D)  Depreciation 
A)  Profit 
B)  Liability 
C)  Gap ratio 
D)  Depreciation

Question 3

Cirrus Inc., a firm manufacturing automobile parts, is currently trying to reduce costs per unit in a drive to improve profits. It uses the concept of _____ that sets cost targets in advance and requires each cost center to set specific cost reduction plans for each accounting period.

Accepted Answer

A)  activity-based costing 
B)  contract costing 
C)  batch costing 
D)  kaizen costing 
A)  activity-based costing 
B)  contract costing 
C)  batch costing 
D)  kaizen costing

Question 4

_______ refer(s) to the financial obligations of a business created by borrowing.

Accepted Answer

A)  Net worth 
B)  Cash flow 
C)  Equities 
D)  Liabilities 
A)  Net worth 
B)  Cash flow 
C)  Equities 
D)  Liabilities

Question 5

What is the importance of accounting for small businesses?

Accepted Answer

Accounting is quite important in achievi

Question 6

_____ refer(s) to current assets resulting from selling a product on credit.

Accepted Answer

A)  Accounts receivable 
B)  Accounts payable 
C)  Liabilities 
D)  Owners' equity 
A)  Accounts receivable 
B)  Accounts payable 
C)  Liabilities 
D)  Owners' equity

Question 7

To make a profit, your prices must cover only direct costs and exclude all indirect costs.

Accepted Answer

A) True 
 B)False

Question 8

In the context of small businesses, _____ is a series of prescribed steps to be taken to ensure that a profit will be made.

Accepted Answer

A)  budgeting 
B)  profit planning 
C)  forecasting 
D)  profit monitoring 
A)  budgeting 
B)  profit planning 
C)  forecasting 
D)  profit monitoring

Question 9

Land, cash, accounts receivable, inventory, equipment, building and other things of value that a company owns are its _____.

Accepted Answer

A)  profits 
B)  assets 
C)  revenues 
D)  expenses 
A)  profits 
B)  assets 
C)  revenues 
D)  expenses

Question 10

List some of the characteristics of a well-managed small business.

Accepted Answer

According to a Dun & Bradstreet report,

Question 11

At regular intervals, a balance sheet is prepared to show the assets, liabilities, and owners' equity of the small business.

Accepted Answer

A) True 
 B)False

Question 12

Losses increase owners' equity.

Accepted Answer

A) True 
 B)False

Question 13

Since the financial position of a small business is constantly changing, these changes need not be recorded for further analysis.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of current asset?

Accepted Answer

A)  Motor vehicles 
B)  Furniture 
C)  Inventory 
D)  Office equipment 
A)  Motor vehicles 
B)  Furniture 
C)  Inventory 
D)  Office equipment

Question 15

In a well-managed small business, the balance sheet is not as important to the owner as the income statement.

Accepted Answer

A) True 
 B)False

Question 16

Small business owners receive income from profits in the form of an increase in their share of the business through an increase in retained earnings.

Accepted Answer

A) True 
 B)False

Question 17

Write a short note on owners' equity.

Accepted Answer

Owners' equity is the owners' share of (

Question 18

In the context of profit planning for small businesses, the more uncertain the future, the greater the need for planning.

Accepted Answer

A) True 
 B)False

Question 19

A badly managed small business is more liquid than a well-managed company.

Accepted Answer

A) True 
 B)False

Question 20

In the context of small businesses, which of the following is an alternative for improving profits?

Accepted Answer

A)  Increasing productivity of people and machines 
B)  Selling products on the basis of price alone 
C)  Buying all components of the product from the outside 
D)  Removing a summer product from a winter line of products 
A)  Increasing productivity of people and machines 
B)  Selling products on the basis of price alone 
C)  Buying all components of the product from the outside 
D)  Removing a summer product from a winter line of products

The financial structure of a firm remains unchanged as business activities occur.

_____ is the difference between revenue earned and expenses incurred.

Cirrus Inc., a firm manufacturing automobile parts, is currently trying to reduce costs per unit in a drive to improve profits. It uses the concept of _____ that sets cost targets in advance and requires each cost center to set specific cost reduction plans for each accounting period.

_______ refer(s) to the financial obligations of a business created by borrowing.

What is the importance of accounting for small businesses?

_____ refer(s) to current assets resulting from selling a product on credit.

To make a profit, your prices must cover only direct costs and exclude all indirect costs.

In the context of small businesses, _____ is a series of prescribed steps to be taken to ensure that a profit will be made.

Land, cash, accounts receivable, inventory, equipment, building and other things of value that a company owns are its _____.

List some of the characteristics of a well-managed small business.

At regular intervals, a balance sheet is prepared to show the assets, liabilities, and owners' equity of the small business.

Losses increase owners' equity.

Since the financial position of a small business is constantly changing, these changes need not be recorded for further analysis.

Which of the following is an example of current asset?

In a well-managed small business, the balance sheet is not as important to the owner as the income statement.

Small business owners receive income from profits in the form of an increase in their share of the business through an increase in retained earnings.

Write a short note on owners' equity.

In the context of profit planning for small businesses, the more uncertain the future, the greater the need for planning.

A badly managed small business is more liquid than a well-managed company.

In the context of small businesses, which of the following is an alternative for improving profits?

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 14: Basic Financial Planning

The financial structure of a firm remains unchanged as business activities occur.

_____ is the difference between revenue earned and expenses incurred.

Cirrus Inc., a firm manufacturing automobile parts, is currently trying to reduce costs per unit in a drive to improve profits. It uses the concept of _____ that sets cost targets in advance and requires each cost center to set specific cost reduction plans for each accounting period.

_______ refer(s) to the financial obligations of a business created by borrowing.

What is the importance of accounting for small businesses?

_____ refer(s) to current assets resulting from selling a product on credit.

To make a profit, your prices must cover only direct costs and exclude all indirect costs.

In the context of small businesses, _____ is a series of prescribed steps to be taken to ensure that a profit will be made.

Land, cash, accounts receivable, inventory, equipment, building and other things of value that a company owns are its _____.

List some of the characteristics of a well-managed small business.

At regular intervals, a balance sheet is prepared to show the assets, liabilities, and owners' equity of the small business.

Losses increase owners' equity.

Since the financial position of a small business is constantly changing, these changes need not be recorded for further analysis.

Which of the following is an example of current asset?

In a well-managed small business, the balance sheet is not as important to the owner as the income statement.

Small business owners receive income from profits in the form of an increase in their share of the business through an increase in retained earnings.

Write a short note on owners' equity.

In the context of profit planning for small businesses, the more uncertain the future, the greater the need for planning.

A badly managed small business is more liquid than a well-managed company.

In the context of small businesses, which of the following is an alternative for improving profits?

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters