2

Question 1

is a document
that brings together the key
elements of a business that
include details about the products
and services, the cost, sales and
expected profits.

Answer 1

business plan

Question 2

Blue Print

Answer 2

Business plan

Question 3

ACCOUNTING EQUATION

Answer 3

Asset=Liability+Equity

Question 4

are anything valuable that your company owns, whether it’s equipment, land, buildings, or intellectual property.

Answer 4

Assets

Question 5

“How much do I have?“
“If it has value, and you own it.

Answer 5

Asset

Question 6

Examples of Asset

Answer 6

CASH, ACCOUNT RECEIVABLE, INVENTORY, PROPERTY AND EQUIPMENT

Question 7

ash and anything that can be converted into cash within a year (like inventory, for example).

Answer 7

Current Asset

Question 8

Things like land, trademarks, and the value of your “brand.”

Answer 8

Fixed Asset

Question 9

physical assets or property owned by a company, such as computer equipment, land, vehicles, machinery, furniture, inventory and securities.

Answer 9

Tangible Asset

Question 10

don’t physically exist, yet they have a monetary value since they represent potential revenue.

Answer 10

Intangible Asset

Question 11

A type of _ _ could be a copyright to a song. The record company that owns the copyright would get paid a royalty each time the song is played.

Answer 11

intangible asset

Question 12

Examples of Intangible Asset

Answer 12

Goodwill, Brand Recognition, Patents, Trademarks and Trade Names and Customer Lists.

Question 13

is an obligation of a company that results in the company’s future sacrifices of economic benefits to other entities or businesses.

Answer 13

Liabilities

Question 14

A _ , like debt, can be an alternative to equity as a source of a company’s financing.

Answer 14

Liability

Question 15

When you look at your accounting software or spreadsheets and look at your _ , you’re asking:
“How much do I owe?”

Answer 15

liabilities

Question 16

Equation for Liabilities

Answer 16

Liabilities = Assets – Shareholder’s Equity

Question 17

Examples of Liabilities

Answer 17

ACCOUNTS PAYABLE, BANK LOANS/ DEBT, MORTGAGE DEBT, MONEY OWED TO SUPPLIERS, WAGES AND TAXES

Question 18

these are debts you owe within the next 12 months

Answer 18

Current Liabilities

Question 19

Examples of Current Liabilities

Answer 19

Accounts Payable
Interest Payable
Income Tax Payable
Bank accounts overdrafts
Accrued Expenses
Deferred Revenue

Question 20

yet to be paid bills

Answer 20

Accounts Payable

Question 21

Interest expense that has already been incurred but not been paid

Answer 21

Interest Payable

Question 22

tax amount owed by company to the government

Answer 22

Income Tax Payable

Question 23

type of short- term loan, bank provides when a payment was done with insufficient account balance

Answer 23

Bank accounts overdrafts

Question 24

incurred but no supporting documents
Such as invoice, issued by the vendor

Answer 24

Accrued Expenses

Question 25

Generated when a company receives early payment for goods and/or services that have not been delivered or completed yet

Answer 25

Deferred Revenue

Question 26

are those that are due after more than one year.

Answer 26

Non- Current Liabilities

Question 27

Examples of Non- Current Liabilities

Answer 27

Bonds Payable Notes Payable

Question 28

amount of outstanding bonds with a maturity of over one year issued by a company.

Answer 28

Bonds Payable

Question 29

amount of promissory notes with a maturity of over one year issued by a company.

Answer 29

Notes Payable

Question 30

If a company takes out a mortgage or a long- term debt, it records the value of the borrowed principal amount as a non-current liability on the balance sheet.

Answer 30

Mortgage payable/long-term debt

Question 31

are recognized as a liability when a company enters into a long-term rental agreement for property or equipment.

Answer 31

Leases

Question 32

is the amount of money that a company's owner has put into it or owns. On a company's balance sheet, the difference between its liabilities and assets shows how much equity the company has.

Answer 32

EQUITY

Question 33

Equity is also called _ _ or _ _ for privately held corporations, is the amount of money given to a company's shareholders if all of its assets were sold and all of its debts were paid off.

Answer 33

shareholders' equity or owners' equity

Question 34

is important because it shows how much an investor has invested in a business based on how many shares they own. When you own stock in a company, you can make capital gains and get dividends.

Answer 34

Equity

Question 35

happens when the company's debts are greater than its assets.

Answer 35

Negative Equity

Question 36

If this keeps happening, the company is said to be insolvent. Investors usually don't want to put their money into companies with negative shareholder equity.

Answer 36

Negative Equity

Question 37

Equation of Equity

Answer 37

Owners' equity = total assets - total liabilities

Question 38

KINDS OF EQUITY

Answer 38

A share of ownership in a company, shown by a stock or other security. On a company's balance sheet, this is the amount of money given by the owners or shareholders plus the amount of money that the company has kept (or losses). This is sometimes called "shareholder equity" or "equity of stockholders." The difference between the value of the securities in a margin account and the amount borrowed from the brokerage for margin trading. The difference between how much a house is worth right now and how much is still owed on its mortgage.

Question 39

is the value that is given to a company's shareholders in terms of finance and accounting.

Answer 39

Equity (in business)

Question 40

Equity in a Business: The book value of _ is found by taking the difference between _ and _. Getting an accurate picture of _ and _. _ are legal obligations or debts that the company has to pay.

Answer 40

equity equity and assets assets and liabilities Liabilities

Question 41

is the book value of the shareholder's assets after the liabilities are removed.

Answer 41

Equity in a balance sheet

Question 42

is an important measure to ascertain the value of the shareholder's funds. When combined with other factors, it gives an idea of the value of a company.

Answer 42

Equity (Importance)

Question 43

WHAT IS THE DIFFERENCE BETWEEN A CREDIT AND A DEBIT?

Answer 43

Debits increase the value of asset, expense and loss accounts. Credits increase the value of liability, equity, revenue and gain accounts.

Question 44

increase the value of asset, expense and loss accounts.

Answer 44

Debits

Question 45

increase the value of liability, equity, revenue and gain accounts.

Answer 45

Credits

Question 46

Financial Statement The _ _ of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea.

Answer 46

financial section

Question 47

The financial section is composed of four financial statements: _ _ _ and _ It also should include a brief explanation and analysis of these four statements.

Answer 47

the income statement, the cash flow projection, the balance sheet, and the statement of shareholders' equity.