**Please explain how you got your answers**

J. A capital budget is the tool hospitality managers use to plan and evaluate...

	A.	the amount of cash on hand.
	B.	selling prices.
	C.	operating expense ratio.
	D.	the purchase of fixed assets.

K. When accounting for an operating lease, each lease payment is listed on the...

	A.	income statement as an operating expense.
	B.	balance sheet as a credit to owner's equity.
	C.	balance sheet as a liability.
	D.	balance sheet as a debit to owner's equity.

L. For investors, "financing" is the term used to describe the...

	A.	estimated returns (ROI) to be generated by a specific investment. (Wrong)
	B.	methods utilized to obtain the money needed to invest.
	C.	length of time borrowed money is invested.
	D.	amount of money that must be raised to fund a new investment.

M. A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment, which includes $1,800 in principal and $200 in interest. Prior to entering any information about the lease payments, the manager's operating income line on the USAR formatted income statement for this month shows a positive $20,000. What will be the lease is entered into the income statement?

	A.	$18,200
	B.	$18,000
	C.	$20,000
	D.	$19,800 (Wrong)

N. Which describes an investor who is willing to give capital to a business but who will play little or not part in the actual management of the business?

	A.	Active investor
	B.	Debt investor
	C.	Equity investor
	D.	Passive investor