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Questions and Answers
Which financial statement shows the net worth of a business at a specific point in time?
Which financial statement shows the net worth of a business at a specific point in time?
- Budget report
- Income statement
- Cash flow projection
- Balance sheet (correct)
What is the purpose of a cash flow projection?
What is the purpose of a cash flow projection?
- To evaluate the efficiency of operations
- To show how much capital investment a business idea needs (correct)
- To determine if a business is profitable
- To match accounts in the financial statements through percentage change calculations
What does the ratio of gross profit to net sales measure?
What does the ratio of gross profit to net sales measure?
- The gain or return on the owner's equity or investment
- The efficiency of operations
- The capability of the enterprise to earn profits from their operations (correct)
- The amount of debt owed to a creditor
