QUESTION What is a financial activity? A) an activity that entails the purchase of assets that could increase a company’s profitability B) an activity that requires upgrades to a company’s information technology system C) an activity that uses or generates cash to keep a company’s daily operations going D) an activity that involves cash exchanges […]
QUESTION Which financial statement answers the question “Is my company making a profit”? A) the balance sheet B) the general ledger C) the cash flow statement D) the income statement ANSWER D
QUESTION A major customer looking for a new company for its advertising campaign is an example of a(n) ________. a. strength b. opportunity c. threat d. weakness ANSWER b
QUESTION Risk affects ________. a. neither your personal nor your business life b. both your personal and your business lives c. only your business life and not your personal life d. only your personal life and not your business life ANSWER b
QUESTION Which of the following is NOT a source of cash flow? A) operating activities B) investing activities C) maintenance activities D) financing activities ANSWER C
QUESTION All of the following are financial risks reflected on the balance sheet EXCEPT ________. a. excess inventory b. not enough cash c. zero long-term debt d. too much debt ANSWER c
QUESTION You own a computer company. Activities such as selling computers, buying components, and assembling the components to make computers are A) operating activities. B) investing activities. C) maintenance activities. D) financing activities. ANSWER A
QUESTION A factor in SWOT analysis is ________. a. officers b. workers c. strengths d. terminations ANSWER c
QUESTION What are internal factors that will help a company achieve its objective? a. strengths b. weaknesses c. opportunities d. threats ANSWER a
QUESTION You own a steel company. You build a state-of-the-art manufacturing facility that lets your business operate more efficiently and sell more products. Building the facility is a(n) A) operating activity. B) investing activity. C) maintenance activity. D) financing activity. ANSWER B
