please match the right answer to the right questions

Develop Your Business Language to respond to three main ompetitive rate of return forh gations and pay its debts. N ovement to remain competi ral elements to be ettective surable, and established fo abch the terms listed with the definitions. Some terms will not be used. 1. Total value that all owners and investors have in the firm 2. All of the things a business owns and uses as a part of business operations 3. The difference in purchasing power of an amount of money at a future date a. assets b. balance sheet c. budget discrepancies d. business financial goals e. capital budget f. cash flow statement 4, Identifies the assets, liabilities, and eq- uity of a business as of a specific date 5. Differences between budgeted amounts and actual financial performance ATEMENTS and the financial health e balance sheet identifies t usiness as of a specific da the financial changes in ic period of time. It doc. alting profit or loss, how cash is used by a bal of cash may mean that ton s or the company has too g. collateral h. creditor ofa i. depreciation J. financial budget k. financial statements 1. future value 6. Projected firnancial statement for a specific future time period 7. Decline in the value of an asset as it ages m. income statement 8. Amount of money borrowed 9. Plan to acquire and finance long-term assets of a business n. interest O. interest rate p. liabilities q. operating budget r. owner's equity 10. Asset promised by a business to a creditor if repayment of a loan isn't completed S. present value T t. principal u. time value of money 11. Amount paid for the privilege of bor- rowing money 12. Examines financial performance over several periods of time to determine siderations of future evenu ormance and condition ne operating budget, cash v. trend analysis patterns 13. Establish direction for the financial plans of a business e A budget should be p s and drawing on infor- Review Concepts tins 14. Which of the following is one of the main financial needs of a business? A business must provide low prices for competitors to remain com- petitive. b. A business must meet its financial obligations and pay its debts c. A business must avoid growing to a large size in order to maintain effectiveness and efficiency All are correct. MONEY y, expressed as a per- a period of one year the end of each year interest is paid not the interest earned alue of investments purchased now versus t money in the future rates d 15. Effective business financial goals must have each of the following ele- ments except a. They must be specific. b. They must be realistic. They must be open-ended. d. They must be established for an identified period of time. Chapter 3 Review 95