Generally Accepted Accounting Practices

What is a Venture Capital firm?

A firm that invests money in small/new ventures

New ventures often need capital - all of the following are sources of $ for new firms but.....

SWAP accounts, Special Entities, Hedge Funds

What is the hurdle rate or expected ranges of ROI - how do businesses use this?

The projected returns from a spend-to help with the go/no go

What does the term bootstrapping mean -as it pertains to finance for businesses?

The business operates and uses profits to grow or reinvest

Even firms like McDonald's do short and long term borrowing to have enough $ to operate

True - Mcdonald's borrows cash in the short and long term

The 3 basic accounting documents are - and I know what goes on them and what they look like

Balance Sheet, Income Statement, Cash Flow Statement

How much business do retail stores do in November and December?

depends on the store but about 1/3

The break even point is the point at which

costs -fixed & variable are covered & next unit is profit

The statement of cash flows shows money going in or out of the business from

Investing, Operating, Financing

The SBA or Small Business Administration is a government agency that does .........

Promotes small business development - provides loan $

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Finance 101

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Accounting and Finance Quiz for Business Management

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Questions 24

Answers

1
Pencil sale rates increased by _____% the year after Sudoku became popular.
700%
100%
200%
50%
2
GAAP stands for the
Generally accessible acceptable practices
Financial Accounting Standards Board
Generally Accepted Accounting Practices
Accounting what?
3
Things you own that are worth $$ and the things you owe $$ on go on this financial statement
Statement of Financial Expectations & Projections
Income Statement
Statement of Cash Flows
Balance Sheet
4
Which of the following is not a common financial statement.
Cash Flow Stmt
Income Statement
Retention Sheet
Balance Sheet
5
What college is ranked #1 for majoring in finance?
University of Pennsylvania
Boston College
Indiana University
Northwestern University
6
The top line of the Income Statement or Profit and Loss Statement is
Income, Sales, Revenue
Profits carried over from last month
Expenses, Cost of goods sold
Losses carried over from last quarter
7
What is a Venture Capital firm?
when a small new firm gets bought out by a big company
A firm that invests money in small/new ventures
An investment bank firm that takes public companies private
Bootstrapping or raising money from operations and suppliers
8
New ventures often need capital - all of the following are sources of $ for new firms but.....
SWAP accounts, Special Entities, Hedge Funds
Banks, Angels, Seed Funds, VC's
Suppliers & Credit Cards
Friends & Family, Personal Savings, Bootstrapping
9
What is the hurdle rate or expected ranges of ROI - how do businesses use this?
The projected returns from a spend-to help with the go/no go
It is the payback time - used to buy or make decision
A track runner who runs and jumps the hurdles - as a sponsor
Returns on Interest - used to rank lenders or prioritize $
10
What does the term bootstrapping mean -as it pertains to finance for businesses?
The business operates and uses profits to grow or reinvest
All of us put on boots - one boot at a time - they borrow $
The firm does a slide pitch deck to angel investors
The firm raises investment- venture capital
11
Which of the following is a liability
gross profit
sales tax
factory
taxes payable
12
Consumer & Business/Trade credit is the ability to buy now and pay later
There are fees or costs associated with credit
Yes
no
Consumer credit is but Business credit isn't
13
Even firms like McDonald's do short and long term borrowing to have enough $ to operate
True - Mcdonald's borrows cash in the short and long term
Happy Meals with toys are the best for kids
False - due to international currency exchange or forex
No, McDonald's has enough $ from operations to fund itself
14
The 3 basic accounting documents are - and I know what goes on them and what they look like
Changes in Equity - Balance Sheet - Revenue Streams
Balance Sheet, Income Statement, Cash Flow Statement
Ratio analysis, Economic projections, Budget/Forecast shorts
VC Term Sheet, Breakeven Analysis, Cost & Cash Control
15
How much business do retail stores do in November and December?
the same as in January and February
50%
depends on the store but about 1/3
20%
16
Who is the #1 venture capital firm based on capital invested in U.S. early-stage deals (2014)
Warren Buffet Inc
Andreessen Horowitz
Trump Inc
Mark Cuban Enterprises
17
Which of the following is an asset?
salaries payable
mortgage
college tuition
factory
18
What was Apple's total sales in 2011? more than the gross domestic product of about 160 nations
$128 billion
$220 billion
$500 million
$634 billion
19
What is the basic accounting equation?
assets = liabilities + equity
assets + liabilities = equity
assets = liabilities - equity
equity = liabilities - assets
20
Budgeting & Forecasting are useful management tools used in the planning function of management
False
No
Yes
True
21
The break even point is the point at which
costs -fixed & variable are covered & next unit is profit
The point where you are losing money on each unit sold
A firm decides to hire the next worker
The point of product design freeze to go to production
22
The statement of cash flows shows money going in or out of the business from
Investing, Operating, Financing
Assets, Liabilities, Owner's Equity
operations, international $ flows, loans
Revenue - Expenses - Depreciation
23
The SBA or Small Business Administration is a government agency that does .........
Government agencies "do" things ?
Helps US firms to import
Promotes small business development - provides loan $
Helps big US firms to export
24
The amount a firm has to pay to acquire capital is called
debt service
Bond Float Fees
cost of capital
IPO costs

Finance 101 Flashcards | StudBud