General Business Exam Questions and
Answers
financial plan - correct answer-set of documents that outline the essential financial facts
about a new venture
how many features does an affective financial plan have ? - correct answer-6
Features of financial plan - correct answer-- identify assets needed
- describe needed amount of capital
- describe expenses
- describe how financial records will be recorded
- forecast finances to predict future profit
- explain how business will acquire money to grow
property or other items of value owned by a business - correct answer-Assets
Operating expenses - correct answer-Day to day cost of doing business
list of start up expenesss - correct answer-- assets
- security deposits
- insurance
- licenses
- remodeling costs
- advertising
- permits
- supplies
List of operating expenses - correct answer-- payroll
- utility bills
- bank fees
- rent
- delivery charges
Financial forecast - correct answer-An estimate of a business's financial outlook for
each of the next few years
A financial forecast should consider: - correct answer-- business conditions
- economy changes
Planned growth can be - correct answer-Rewarding
, Companies must grow to remain - correct answer-Competitive
Unplanned growth can be - correct answer-Chaotic
Budget - correct answer-Plan specifying how money will be used or spent during a
particular period
Plan for your income and expenses from the time you start a business to the estimated
time it will make a profit - correct answer-Start up budget
Plan for he actual money the business owner spends on a daily, weekly, or monthly
basis - correct answer-Cash budget
Plan for the amount expected to be spent and earned over a given period of time,
usually six months or a year - correct answer-Operating budget
The systematic process or recording and reporting the financial position of a person or
organization - correct answer-Accounting
an accounting system is designed to _______, _______, and _______ the final
transactions that affect the operation of a business - correct answer-Collect, record,
report
accounting is also known as - correct answer-The language of business
GAAP - correct answer-Generally Accepted Accounting Principles
Anything of value that is owned or controlled - correct answer-Property
Either used up or current cash during the normal cycle of the business (1 year) - correct
answer-Current assets
Items of value that will be held for more than one year - correct answer-Fixed assets
Accounting term for financial claim to all assets - correct answer-Equity
Owners claim to the assets of the business - correct answer-Owners equity
Accounting Equation - correct answer-Assets = Liabilities + Owner's Equity
Shows how much money you made or lost - correct answer-Income statement
Assets, liabilities, and owners equity balances on a given date - correct answer-Balance
sheet
Answers
financial plan - correct answer-set of documents that outline the essential financial facts
about a new venture
how many features does an affective financial plan have ? - correct answer-6
Features of financial plan - correct answer-- identify assets needed
- describe needed amount of capital
- describe expenses
- describe how financial records will be recorded
- forecast finances to predict future profit
- explain how business will acquire money to grow
property or other items of value owned by a business - correct answer-Assets
Operating expenses - correct answer-Day to day cost of doing business
list of start up expenesss - correct answer-- assets
- security deposits
- insurance
- licenses
- remodeling costs
- advertising
- permits
- supplies
List of operating expenses - correct answer-- payroll
- utility bills
- bank fees
- rent
- delivery charges
Financial forecast - correct answer-An estimate of a business's financial outlook for
each of the next few years
A financial forecast should consider: - correct answer-- business conditions
- economy changes
Planned growth can be - correct answer-Rewarding
, Companies must grow to remain - correct answer-Competitive
Unplanned growth can be - correct answer-Chaotic
Budget - correct answer-Plan specifying how money will be used or spent during a
particular period
Plan for your income and expenses from the time you start a business to the estimated
time it will make a profit - correct answer-Start up budget
Plan for he actual money the business owner spends on a daily, weekly, or monthly
basis - correct answer-Cash budget
Plan for the amount expected to be spent and earned over a given period of time,
usually six months or a year - correct answer-Operating budget
The systematic process or recording and reporting the financial position of a person or
organization - correct answer-Accounting
an accounting system is designed to _______, _______, and _______ the final
transactions that affect the operation of a business - correct answer-Collect, record,
report
accounting is also known as - correct answer-The language of business
GAAP - correct answer-Generally Accepted Accounting Principles
Anything of value that is owned or controlled - correct answer-Property
Either used up or current cash during the normal cycle of the business (1 year) - correct
answer-Current assets
Items of value that will be held for more than one year - correct answer-Fixed assets
Accounting term for financial claim to all assets - correct answer-Equity
Owners claim to the assets of the business - correct answer-Owners equity
Accounting Equation - correct answer-Assets = Liabilities + Owner's Equity
Shows how much money you made or lost - correct answer-Income statement
Assets, liabilities, and owners equity balances on a given date - correct answer-Balance
sheet
