Entrepreneurship 3310 Exam 2 Revision Test Papers Already Answered Correct.

Entrepreneur Definition - Answer A person who takes a new idea or a twist on an old idea and turns it into a profitable and growing business Revenue = - Answer price x volume Three primary financial statements that businesses use to forecast and record operating results - Answer The profit and loss statement, the cash flow statement, and the balance sheet Pro forma financials - Answer forward looking and based on estiates of business activity In a business plan, entrepreneurs are required to provide pro forma statements for at least ... - Answer three years and sometimes as much as five years Investors and lenders look at four criteria - Answer clarity of expression, consistency with knowledge of commercial practices, internal consistency, and comprehensiveness Another word for sales forecast - Answer revenue estimate the sales forecast is necessary for an entrepreneur to ... - Answer produce the 3 basic financial statements To account for different operating results, entrepreneurs ... - Answer develop more than one sales forecast, often distinguished as worst case, base case, and best case the profit and loss statement (P&L) states - Answer accurately and fairly the profit or loss of the operations for a given accounting period using GAAP rules Revenue shoild have the appropriate costs of acquiring that revenue attributed ... - Answer in the same accounting period Revenue spent on any item that with a useful life 1 year is - Answer a capital good and a capital expense Define depreciaition - Answer the cost of a capital good over the period of its useful life