Checkup 1

Question 1

poor financial management leads to/is the cause of

Answer 1

business failure

Question 2

flow

Answer 2

working capital

Question 3

good financial management

Answer 3

necessary to achieve economic goals

Question 4

sources of financing

Answer 4

liabilities and net worth

Question 5

these overlap

Answer 5

finance and marketing

Question 6

land is a part of this asset

Answer 6

fixed asset

Question 7

limited

Answer 7

capital resources

Question 8

accounts receivable are part of what assets

Answer 8

current asset

Question 9

financial statement

Answer 9

Balance Sheet

Question 10

accounts payable

Answer 10

short-term liability

Question 11

List 3 functions of financial management

Answer 11

asset acquisition, raising funds, and financial planning

Question 12

components of working capital

Answer 12

cash, accounts receivable, and inventory

Question 13

The assets that require financing prior to beginning business operations are ________________________________.

Answer 13

current and fixed assets

Question 14

Business personnel who perform financial management functions are ________________________.

Answer 14

the owners and managers

Question 15

Financial management is essential to _________________________________________.

Answer 15

large and small businesses

Question 16

Working capital is __________ to change than fixed assets when sales increase.

Answer 16

more likely

Question 17

_________________ is a comprehensive function of financial management.

Answer 17

Financial planning

Question 18

The term ________ may have more than 1 meaning.

Answer 18

capital

Question 19

The reason for all businesses failure is poor financial management. (T or F)

Answer 19

False

Question 20

are sources of financing that must be repaid within 1 operating cycle

Answer 20

short-term capital/working capital

Question 21

All businesses require large amounts of inventory and accounts receivable. (T or F)

Answer 21

False

Question 22

Fixed assets usually flow through the business. (T or F?)

Answer 22

False

Question 23

The large capital requirements of some businesses may prevent individuals from becoming ______________________.

Answer 23

business owners