Answer Key

Company finance - cash flow, profit and loss account, balance sheet – Practice 1

Choose the correct answer:
  1. The client list of a successful training company, all of which are successful businesses may be considered a [intangible asset]
  2. A Board member that leaves the company at the age of 65, and whose employment contract is not renewed is entitled to [pension]
  3. If a person or business has more debts than money to pay then, this means they have more liabilities than assets, and the are  [insolvent]
  4. The dollar, the euro and the yen are all  [currencies]
  5. Company cars depreciate quickly. We write them  [off] completely after five years.
  6. In the first year of operation, the company  [ploughed back] 44 per cent of. its profits into advertising.
  7. His company went  [bust] very quickly and now he is looking for a new job to pay all his debts.
  8. In April 1933 the company's  [ledger book] listed income of 25 cents for fashioning a key.
  9. Money which customers owe, that will definitely be paid in the next 60 days is considered a [current asset]
  10. In the US, ‘accounts  [receivable] ' refers to customers that owe the company money