Answer Key

Company finance - cash flow, profit and loss account, balance sheet – Practice 2

Fill in the gaps with the appropriate word or phrase in the correct form.
  1. A 62-year-old retired city councilor from Kingston, paid his $230 Visa bill last month in 985 [instalments] , often pennies at a time, to protest against complicated bank policy.
  2. Our accounts  [payable] department processes more than 1 million invoices and issues more than 250,000 payments per year.
  3. Cheap table wine is clearly a  [wasting] asset as it turns to vinegar within a relatively short period even when unopened.
  4. In 1981, he reached the top of his career ladder and became the most important person in the company - its president and the  [CEO] . He held that position until retiring in eight years ago.
  5. Three quarters later, the company still  [bled] red ink, the CEO quit, & the acting CEO declared bankrupcy. It was not fun.
  6. Since all our office equipment  [depreciated] , we were not able to re-sell it for the original price. We had to take into consideration the amortization process.
  7. These days many liberals in Congress are very anxious because there is not enough money in the federal  [budget] to fund their “priorities” such as education, health care and veterans‘ affairs.
  8. The old company was  [wound] up at the end of 1897 and a new company, The Coast Development Ltd. was formed.
  9. Villarrobledo continued to  [put] up funds after Matarile was no longer able to cover the expenses of the festival.
  10. Certain basic financial reports are used to present the score in business - the  [balance]sheet, income statement, statement of retained earnings, and statement of changes in financial position.