Study9MObrien

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School

Saint Charles Community College *

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PERSONAL F

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Finance

Date

Feb 20, 2024

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docx

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3

Uploaded by ColonelOstrich2551

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Name: Madeleine O'Brien Date: July 18, 2022 Graded Assignment Section 10 Study Questions Instructions Save the file in your Finance folder, and name it with Study, the section number, and your first initial and last name. For example, Jessie Robinson's study questions for Section 1 would be named Study1JRobinson. Answer the questions for each lesson on the same day that you read the lesson. Save the file before closing it each day. Then turn in your answers to the study questions at the end of the section. Review Lesson 4 of the Course Overview for instructions about turning in your study questions. Assignment Total score: ____ of 6.0 points Answer each question fully. Complete sentences are not necessary. Lesson 1 (Score for Question 1: ___ of 0.5 points) What is an angel investor? Answer: People who provide money to a business in exxhange for debt or equity. (Score for Question 2: ___ of 1.0 points) What is the difference between startup costs and operating costs? Answer: Startup costs are keeping it going until it can pay for itself while operating costs include both fixed and variable cots that occur while you are running the business. (Score for Question 3: ___ of 0.5 points) What is cash flow? Answer: The movement of money in and out of a business. This only refers to actual money in cash or in the bank, not credit that is owned to the company and counted as income. (Score for Question 4: ___ of 0.5 points)
How is a company’s gross profit calculated? Answer: By subtracting the cost of goods sold from the total revenue. (Score for Question 5: ___ of 0.5 points) What are a company’s accounts payable? Answer: Another part of a company's liabilities. These are amounts of money owed to other companies for products. Lesson 2 (Score for Question 1: ___ of 0.5 points) What is an invoice? Answer: A record of a product that was provided but not yet paid for. It is similar to a receipt, but it says how much is owed, instead of how much was paid. (Score for Question 2: ___ of 0.5 points) What is an income statement? Answer: A document that shows the company's revenue and expenses during a specific time period, such as a year, month, or quarter. (Score for Question 3: ___ of 0.5 points) What is the balance sheet equation? Answer: Assests = Liablities + Owner Equity (Score for Question 4: ___ of 0.5 points) What is a financial ratio? Answer: A way to compare two financial factors in order to analyze a company's financial health. (Score for Question 5: ___ of 0.5 points) What does the following equation represent: Total liabilities ÷ Total assets? Answer:
Debt ratio (Score for Question 6: ___ of 0.5 points) What is cash basis accounting? Answer: Records income when cash is received, and it records expenses whe cash is paid out.
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