Entrepreneurship Chapter 7
2__ Money (3) Money owed to a company by customers (4) Money owed to another company by a company __1__ Things a company owns that are worth money
1. Assets 2. Cash 3. Accounts receivable 4. Accounts payable
1. Keeping track of customer, sales, and inventory data (4) Reporting and paying all local, state, and federal taxes (3) Obeying all regulations related to contracts, licenses, payroll, etc. (2) Analyzing data for future growth
1. Gathering and organizing data 2. Planning for the future 3. Legal compliance 4. Tax preparation
2 A snapshot of how your financial position looks at a moment in time (1) A document that shows the company's revenue and expenses during a specific time period 4) Tracks the flow of cash in and out of the company __3__ Shows the amount the owners invested, plus or minus retained earnings (the company's earnings or losses since it was started)
1. Income statement 2. Balance sheet 3. Statement of owners' equity 4. Cash flow statement
(5) Shows a company's liquidity at a point in time (4) Compares a company's debt to amount of equity invested (3) Comparison of a company's debt to its assets __1__ Return an investor gets from an equity investment (2) Shows a company's profitability
1. Return on equity (ROE) 2. Return on assets (ROA) 3. Debt ratio 4. Debt to equity 5. Current ratio
What is customer relation management software, CRM software, used for in business?
to track and manage relationships with customers
Businesses gather and keep customer data to improve products, services, and customer service.
true
CRM software produces reports using customer data for business owners to use in decision making.
true
Internal accounting controls protect the company, provide accountability, and prevent fraud.
true
Inventory control records save time and money.
true
A financial forecast is based on
a company's historical data
A collection of data is
a database
QuickBooks and Peachtree are examples of
accounting software
Accounting software can perform calculations automatically. It is unlikely to make mistakes. This is an example of which of the following?
accuracy
Which of the following are important procedures to include in internal accounting controls?
all cash is received, deposited, recorded, and protected.
Which of the following is also known as the income statement?
profit and loss statement
Which of the following quickly shows how much profit or loss has been generated by the company?
profit and loss statement
Accounting software is helpful in arranging and analyzing data into financial reports. This is an example of which of the following?
reporting
Which of these are included in a budget?
revenues and expenses
A financial forecast for 12 months or less is considered
short-term financial forecasting
This helps entrepreneurs manage the day to day and yearly financial needs.
short-term financial forecasting
Which of the following shows a company's worth at any given time?
balance sheet
Which statement uses this formula Assets = Liabilities + Shareholders' Equity?
balance sheet
The most common system for inventory control record keeping is
barcode system
What is a plan a business owner uses to outline spending and saving within a specific time frame?
budgeting
This is another word for information.
data
Inventory control records are used for preparing taxes.
false
What is a report outlining future plans and whether a company is reaching its budget?
financial forecasting
Nadia requires all of her bookkeepers to only make payments with proper authorization and record each payment. This is an example of what type of accounting practice?
internal accounting control
The procedures and systems a company uses for ensuring records are reliable and accurate, assets and information are protected, and laws and regulations are followed properly are called
internal accounting controls
The process of effectively managing supplies, parts, or items in a company's stockroom is called
inventory control
A financial forecast that extends for three to five years is considered
long-term financial forecasting
This provides the opportunity to make decisions for the future growth of a business.
long-term financial forecasting