Beruflich Dokumente
Kultur Dokumente
Class: ____________________
True/False
____ 1. Assets are things that are OWED, and liabilities are things that are OWNED.
____ 2. An accounts receivable record shows money owed and payments made by a business.
____ 3. Financial statements provide detailed information on such items as insurance and real
property.
____5. An assets book value can be calculated by subtracting its original cost from its depreciation.
____ 6. Stores that use budgets for their financial operations are usually more successful than stores
that do not use budgets.
____ 7. Money that owners borrow for their business using their own homes as security for the loan is
owner capital.
____ 8. The book value of a share of stock is found by dividing the corporations net worth (Assetsliabilities) by the total number of shares outstanding.
____ 9. When starting a business, it is usually desirable to issue only common stock.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 11. What is the formula for calculating the book value of stock?
a.
b.
c.
d.
____ 12. Calculate a companys book value of stock based on the following information: Assets = $1,500;
Liabilities = $1,200; Net worth = $300; Number of total shares = 15
a.
b.
c.
d.
____ 14. A business that is planning to introduce a new product will need a
a. Capital budget
b. Cash budget
c. sales budget
d. start-up budget
____ 15. The original cost of an asset less its accumulated depreciation is the
a. Balance value
b. Book value
c. depreciated value
d. residual value
____ 16. Net worth, owners equity, and stockholders equity are all terms meaning
a. Capital
b. Liabilities
c. assets
d. inventory
c. costs
d. all of the responses are correct
c. capital
d. a liability
c. creditor capital
d. cash flow
____ 24. A process of recording and reporting the financial information resulting from business transactions are
called
a. Budgeting
b. Reporting
c. accounting
d. financing
____ 25. Earnings reinvested in the business to replace equipment, add new facilities, or serve as financial
protection are called
a. Profits
b. Debt capital
c. retained earnings
d. dividends
They have the right to vote at annual meetings, at one vote per share of stock owned.
If the corporation makes a profit, they are paid before creditors.
They are guaranteed dividends every year.
They must purchase stock at its par value
a. Equity capital
b. Through the black market
c. retained earnings
d. Both A & C
____ 29. Which of the following financial statements contains assets, liabilities, and capital (stockholders
equity or Owners equity)?
a.
b.
c.
d.
Financial records
Income statement
Balance sheet
Budget
____ 30. Which of the following financial statements contain expenses, revenues and net loss or profit?
a.
b.
c.
d.
Financial records
Income statement
Balance sheet
Budget
Matching
Match each item with the correct statement below.
a. Accounts payable
b.
c.
d.
e.
f.
g.
h. Liabilities
____ 36. Claims against assets or things OWED the debts or things owed of
a business
i.
Promissory Note
j.
Preferred Stock
____ 37. The value of a share of stock that is found by dividing the net worth
(assets minus liabilities) of the corporation by the total number of shares
outstanding.
____ 38. A financial statement/ document that reports total revenue and
expenses for a specific period to determine a net profit or loss.
____ 39. Ownership that gives holders preference over the common
stockholders when distributing dividends or assets.
____ 40. Ownership that gives holders the right to participate in managing the
business by having voting privileges and by sharing in the profits (dividends) if
there are any.
Assets
Balance sheet
Book value
Common Stock
Equity Capital
Income statement
Complete the following Balance Sheet and Income Statement. Both are worth 5 points.
Balance Sheet
Get the assets column correct = 1 point
Get the liabilities column correct = 1 point
Get the capital column correct = 1 point
Get the Calculations correct = 1 point
Get the top part correct = 1 point
Income Statement
Get the top part correct = 1 point
Get the revenue section correct = 1 pt.
Get the gross profit calc. correct = 1 pt
Get the expenses sec. correct = 1 pt.
Calc. net profit/loss correct = 1 point
From the information provided, prepare a balance sheet for Reys Rib Shack using the form that follows. Data
needed:
______________
$_________
Liabilities
______________
$_________
______________
$_______
______________
$_________
______________
$_______
______________
$_________
Total Liabilities
$_______
Capital:
______________
Total Assets:
$_________
$________
$________
On the form below, prepare this years 2016 income statement for Fins Ice Cream Shop. Data needed:
$________________
____________________________
$________________
Total Revenue:
$_______________
$_______________
Gross Profit:
$________________
Operating Expenses:
__________________________
$_________________
__________________________
$_________________
__________________________
$__________________
___________________________
$__________________
___________________________
$__________________
$___________________
$________________________