Define the Following Terms About Financial Statements in Business Flashcards

The three most important statements for providing financial information about a business are the income statement, the balance sheet, and the statement of retained earnings. T/F

______________ was passed to try and ensure every working man and woman in the nation safe and healthful working conditions and to perserve human resources.

The period of time that begins when money is spent on raw materials and does not end until money is collected on the sale of a finished good is known as which of the following?

What type of scheduling device enables a small business owner to see the time required for each step in the production process and see the current status of a job?

The Decision to seek outside funds, either through debt or equity, is relatively unimportant and simple. T/F

In the accounting equation, Assets = Liabilities + ____________>

In the accounting equation, Cash Flow = Receipts - _____________.

Using a single-entry accounting system will allow a small business owner to produce an income statement and a balance sheet. T/F

The cash flow statement is a critical financial statement, often more important to the survival of a business than profit as reported on the income statement. T/F

The consideration element of a contract states that

Copyrights protect all of the following except

A production process that allows products to be produced specifically for individual customers is know as

Bankruptcy accomplishes two different objectives. These objectives are which of the following?

Most lenders are hesitant to make loans to startup businesses unless a wealthy friend or relative will co-sign the loan.

The primary reason a small business needs adequate cash flow is to pay the bills incurred by the business.