QUESTION In the equation for calculating a company’s net profit, what do expenses refer to? A) the invoices sent to the company by the suppliers it is buying from B) the cash flowing out of the company during the current period C) the amount of money the company spent on something during a certain time […]
Date: September 3rd, 2020
QUESTION Vertical diversification is the situation in which you have assets that address different aspects of the same situation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION When does a company record its expenses? A) when the company receives a bill B) when the company pays a bill C) when the company’s supplier has put a bill in the mail D) when the company decides to purchase something ANSWER A
Date: September 3rd, 2020
QUESTION When does an expense become a cash outflow? A) when a company makes a withdrawal from its bank B) when a company decides to make a purchase C) when a company receives a bill D) when a company pays a bill ANSWER D
Date: September 3rd, 2020
QUESTION Investments in objects, such as coins, stamps, and art, are considered to be very liquid. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION Expenses are divided into A) operating expenses and income. B) cost of revenue and operating expenses. C) cash out and cash deferred. D) invoices received and invoices paid. ANSWER B
Date: September 3rd, 2020
QUESTION Most wealthy people know that ________. a. just wanting a million dollars is enough b. the more money you earn, the less you pay in taxes and expenses c. you cannot put all your financial “eggs” in one basket d. spending a lot of money is the path to riches ANSWER c
Date: September 3rd, 2020
QUESTION The income statement, cash flow statement, and balance sheet are all equally important to business operation. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
QUESTION Income is A) the amount of cash a company deposits in its bank during one year. B) the amount of cash a company expects to bring in during the coming year. C) the amount of money a company generates during a period of time. D) the total amount of money received by a company […]
Date: September 3rd, 2020
QUESTION A balance sheet is helpful both on a business level and on a personal level. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
