Exam (elaborations) MGMT 3850

1) In order to reach profit objectives, entrepreneurs must be aware of their firms': A) current ratio and liabilities. B) fixed assets and owner's equity. C) assets and liabilities. D) overall financial position and any changes in the financial status. 2) The shows what assets the business owns and what claims creditors and owners have against those assets, and is built on the basic accounting equation: Assets = Liabilities + Owner's Equity. A) income statement B) sources and uses of funds statement C) balance sheet D) cash budget 3) The represents a "snapshot" of a business, showing an estimate of its value on a given date, while the is a "moving picture" of the firm's profitability over time. A) balance sheet; income statement B) income statement; balance sheet C) statement of cash flows; income statement D) balance sheet; statement of cash flows 4) Which of the following associations is correct? A) Balance sheet - cost of goods sold B) Income statement - owner's equity C) Current assets - inventory D) Long-term liabilities - accounts payable 5) The first section of a balance sheet lists: A) assets. B) liabilities. C) claims creditors have against the firm's assets payable within one year. D) the owner's equity in terms of initial capital invested and retained earnings. ...................................CONTINUED..............................