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Chapter 13 Questions

29/10/2020 Client: ericsermon1000 Deadline: 3 days

 


Answer the following questions and submit to Chapters 13 questions. 10 questions. 4-5 sentences answer



  1. Why is it important to understand financial management in order to be an effective manager? Why does this process being with the balance sheet and P&L statement?

  2. What does the balance sheet tell a manger about her business? List three things the balance sheet does not tell a manager about her business.

  3. What does the P&L statement tell a manager about his business? List three things the P&L statement does not tell a manager about his business.

  4. What is a fiscal year? Explain why it may not coincide with a calendar year.

  5. What is the accounting equation? How is it used to develop a balance sheet?

  6. Explain when a business is solvent and insolvent. Develop an example where an agribusiness may be solvent at one point in the year and insolvent in another.

  7. What is the difference between current assets and fixed assets?

  8. What is the difference between a current and a long-term liability?

  9. What is owner’s equity? How is it different from net worth?

  10. Why are fixed assets depreciated and current assets are not?

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