FINANCIAL MANAGEMENT QUESTIONS AND ANSWERS WITH SOLUTIONS 2024

FINANCIAL MANAGEMENT QUESTION S AND ANSWERS WITH SOLUTIONS 2024 Assets - ANSWER Items of value owned by a business Balance sheet - ANSWER A financial statement that lists, what a business owns (assets), what a business owes (liabilities), and how much it is worth at a particular point in time Break -even point - ANSWER Volume of sales that must be made to cover all the expenses of a business Cash flow statement - ANSWER An accounting report that describes the cas that flows in and out of a business Check register - ANSWER A book in which one records the dates, amounts, and names of people to who checks have been written Collateral - ANSWER Property the borrower forfeits if he or she defaults on a loan Cost of goods sold - ANSWER The cost of the inventory a business sells durnig a particular period Debt capital - ANSWER Money loaned to a business with the understanding that the money will be repaid, with interest, in a certain time period Equity capital - ANSWER Money invested in a business in return for a share in the business's profits Fixed costs - ANSWER Fees that must be paid regardless of how much a good or service is produced General journal - ANSWER Used to record any kind of transaction General ledger - ANSWER Used to post items that are recorded in journals; ledgers separate transactions by account, allowing business owners to analyze accounts indiviually