Chapter 7 financing and accounting
An inventory record will include
A description of the item A unit and total cost An item number The quantity of the item
Which funding to all involves the leasing of equipment from manufacturers or a third-party reseller
Asset lease
Which of the following are considered sources of debt for starting a new business
Banks suppliers credit cards
Which of the following are true with regard to managing the flow of data
Data is obtained in a timely matter Data is tied to the strategic needs of a business
Besides banks finance companies in friends and family another source of non-equity loans come from
The founders
Grant funding typically comes from
A nonprofit agency The government
Which of the following key reports is the master system for tracking the activity of the business
Chart of accounts
Which of the following is a relatively new meaning of raising capital that may result in either an equity approach or an in-kind exchange for the firm
Crow funding
Crow funding involves entrepreneurs making a pitch on an Internet site and letting potential investors know what they will receive with your funding which might be equity but is more often a product service or a gift
Crowdfunding
If a firm needs to generate cash in the short run accounts receivable can be sold at a discount via a technique known as
Factoring
Besides banks finance companies and the founders another source of non-equity loans come from
Friends and family
Which of the following typically issue grants
Government private foundations
A chart of accounts is simply a listing of each type of activity and each type of asset within the company rank the categories of accounts from first to last associated with chart of accounts
Income category expense category asset category
Which type of funding involves a contractual agreement Whereby the business receives some amount of money that must be repaid over a specific period of time at a specified interest rate
Loan
Which accounting record tracks time for hourly workers and attendance for salaried employees
Payroll
Which of the following are key reports a business should generate
Payroll petty cash accounts payable expense account
Which account operates much like a bank savings account using a register to track the amount in the box
Petty cash register
When recording credit card expenses it is necessary to
Record the interest as interest expense Record the payment made to the account Record each line item with emotion for the type of credit card
Inventory should be taken at scheduled times during the year and an exact match should be completed between
Starting inventory units sold ending inventory
Which of the following is a disadvantage of suppliers investing in the new venture
Suppliers require an exclusivity agreement
Equity investment
An equity investment is funds received by a business in exchange for a percentage ownership of the business
The chart of accounts is like a master system for tracking the activity of the business
Chart of accounts
Which of the following statements are true regarding a venture capital fund
A venture capital fund has limited partners seeking high returns Adventure capital fund has a general partner investigating new venture equity investments A venture capital fund is organized to make significant equity investments in high growth new ventures
Which of the following records are necessary in order to record all outflows of funds when processing the expense account
Check register petty cash register
Which of the following large firms have been active equity investors and new start up firms in the technology sector
Cisco Intel Microsoft
Which of the following is not true with regard to managing the flow of data
Data measurement methods must be complex
Which Funding option traditionally involves selling a percentage of the business to an outside party
Equity investment
Which account should be used when there is an expense too small to write a check for or when a check is simply inappropriate
Petty cash register