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Mixed Quiz
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1

To satisfy outside investors, the financial plan will need two years of past financial data.
A)True
B)False
2

Projected expenditures for new equipment such as vehicles, computers, or new facilities are referred to as capital expenses.
A)True
B)False
3

In an Internet start-up, advertising costs are minimal to create awareness of the website.
A)True
B)False
4

Cash flow and profit are synonymous.
A)True
B)False
5

Depreciation is considered a source of funds because it does not represent an out-of-pocket expense.
A)True
B)False
6

_____ budgets are used to project cash flows for the cost of goods produced.
A)Capital
B)Operating
C)Production
D)Depreciation
7

The major source of revenue is _________.
A)loans from banks
B)outside investors' contributions
C)sales
D)all of the above
8

Which of the following is not an example of cash flow?
A)Payment on a loan
B)Sales
C)Depreciation
D)Both B and C
9

Which of the following would be a current asset?
A)Certificates of deposit that mature in six months
B)Customer receivables
C)Cash
D)All of the above
10

Which of the following does not represent owner's equity?
A)The excess of all assets over all liabilities
B)The net worth of the business
C)Everything of value owned by the firm
D)Both A and B





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