2. 4.01 Review POBF

3. Carl estimated that his business could invest an additional $40,000. Which type of budget was used? A. Cash B. Expansion C. Operating D. Start-up

4. From Figure A, what is the total amount of liabilities? A. $52,000 B. $53,100 C. $60,100 D. $69,000

5. Tonya projected that her business expenses for the next six months should be around $2,500. This is an example of what kind of financial planning? A. Expansion B. Personal C. Operation D. Start-up

6. Which statement is true regarding Figure F? A. Company A has a more favorable current ratio than Company B. A. Company A has a more favorable current ratio than Company B. B. Company A has a more favorable debt to equity ratio than Company B. B. Company A has a more favorable debt to equity ratio than Company B. C. Company B has a more favorable return on equity ratio than Company A. C. Company B has a more favorable return on equity ratio than Company A. D. Company B has a more favorable net income ratio than Company A. D. Company B has a more favorable net income ratio than Company A.

7. Mary reviewed her company's budget for one year and determined that it is continuously spending more on utilities. Which type of budget was used? A. Cash B. Expansion C. Operating D. Start-up

8. Which statement is true regarding Figure F? A. Company A has a more favorable net income ratio than Company B. A. Company A has a more favorable net income ratio than Company B. B. Company A has a less favorable return on equity ratio than Company B. B. Company A has a less favorable return on equity ratio than Company B. C. Company B has a less favorable debt to equity ratio than Company A. C. Company B has a less favorable debt to equity ratio than Company A. D. Company B has a less favorable current ratio than Company A. D. Company B has a less favorable current ratio than Company A.

9. Harry's Grocery Store revenue for last year was $98,000 and it paid $103,000 for expenses. Which is the net income/net loss amount for the store? A. $5,000 net income B. $5,000 net loss B. $5,000 net loss C. $9,000 net income D. $9,000 net loss

10. Using Figure D, what is the current ratio for assets to liabilities? A. 0.83 B. 1.06 C. 1.30 D. 2.75

11. Alicia should use which type of budget to analyze the business performance of her floral company? A. Cash B. Expense C. Operating D. Start-up

12. Using Figure D, what is the debt to equity ratio for total liabilities to owners' equity? A. 0.22 B. 1.45 C. 1.47 D. 2.20

13. Last year's revenue for Zoe's Company was $95,000 and it paid $83,000 for expenses. Which is the net income/net loss amount for the business? A. $5,000 net income B. $5,000 net loss C. $12,000 net income D. $19,000 net loss

14. Jill can find the value of assets and liabilities for her business at the end of the year on which type of financial statement? A. Balance sheet B. Budget C. Income statement D. Cash flow statement

15. Jack reviewed his company's budget for six months and determined that it is spending more on credit card purchases. Which type of budget was used? A. Cash B. Expansion C. Operating D. Start-up

16. Ford Motor Company determined it can afford to start selling vehicles that imitate a family room on wheels. This is an example of what kind of financial planning? A. Expansion B. Personal C. Operation D. Start-up

17. Amana Appliance Company determined its affordability to start selling self-cleaning stoves. This is an example of what kind of financial planning? A. Expansion B. Personal C. Operation D. Start-up

18. Using Figure B, what is the net income ratio for total sales to net income? A. 0.16 B. 0.33 C. 3.07 D. 6.25

19. Kate projected that her business revenue for the next quarter should be around $7,000. This is an example of what kind of financial planning? A. Expansion B. Personal C. Operation D. Start-up

20. Tonya compared revenue of $30,000 to expenses of $22,000 to determine whether her business experienced a net income or loss. Which type of financial statement was used? A. Balance sheet B. Budget C. Income statement D. Statement of owner's equity

21. Which statement is true regarding Figure C? A. Company A has a more favorable current ratio than Company B. A. Company A has a more favorable current ratio than Company B. B. Company A has a more favorable debt to equity ratio than Company B. B. Company A has a more favorable debt to equity ratio than Company B. C. Company B has a more favorable return on equity ratio than Company A. C. Company B has a more favorable return on equity ratio than Company A. D. Company B has a more favorable net income ratio than Company A. D. Company B has a more favorable net income ratio than Company A.

22. Ted projected that his business revenue for the next quarter should be around $9,000. This is an example of what kind of financial planning? A. Expansion B. Personal C. Operation D. Start-up

23. Paul reviewed his company's budget for six months and determined that it is spending less on utilities. Which type of budget was used? A. Cash B. Expansion C. Operating D. Start-up

24. Using Figure E, what is the return on equity ratio for net profit to owners' equity ? A. 0.67 B. 1.52 C. 1.77 D. 2.25

25. Using Figure D, what is the net income ratio for total sales to net income? A. 2.71 B. 3.71 C. 4.71 D. 5.71

26. Paul projected that his business expenses for the next twelve months should be around $30,000. This is an example of what kind of financial planning? A. Expansion B. Personal C. Operation D. Start-up

27. Last month's revenue for Tisha's Tire Company was $700 and it paid $650 for expenses. Which is the net income/net loss amount for the business? A. $50 net income B. $50 net loss B. $50 net loss C. $500 net income D. $500 net loss

28. Using Figure B, what is the current ratio for assets to liabilities? A. 0.81 B. 1.06 C. 1.23 D. 2.73

29. Using Figure E, what is the debt to equity ratio for total liabilities to owners' equity ? A. 1.22 B. 1.45 C. 1.47 D. 2.00

30. Which financial ratio will John use if he wants to determine whether his business could pay its debts due this month? A. Current B. Debt to equity C. Net income D. Return on equity

31. Using Figure B, what is the debt to equity ratio for total liabilities to owners' equity? A. 0.22 B. 0.45 C. 1.92 D. 2.23