Question: Which type of funding requires that the business owner share ownership with investors?

Answer: Reserve funding

Question: Which of the following tips can hurt your cash flow?

Answer: Pay your bills early.

Question: Which of the following is a type of liability?

Answer: Accounts payable

Question: If you want to know whether a company had a profit or a loss during a specific period of time, which financial statement would be most helpful?

Answer: Income statement

Question: In double-entry accounting, where should you record money that is leaving your company to pay bills?

Answer: In the credits column

Question: What is the opportunity cost of an investment?

Answer: The value of the next most valuable opportunity

Question: If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpful?

Answer: Cash flow statement

Question: Which of the following statements describes GAAP?

Answer: GAAP recommends accrual basis accounting.

Question: If your company uses accrual basis accounting, what do you need to pay special attention to?

Answer: Cash flow

Question: Money that your company has in the bank in case of unexpected financial needs or in case sales slow down is called ____________.

Answer: A cash reserve