A statement of owner’s equity is:

a statement of financial condition prepared at
the end of a set period of time that lists a company’s assets, liabilities, and
owners’ equity.

a statement that tracks a company’s revenue
and expenses over any given period.

a statement that articulates the retained
earnings/loss of the sport business (i.e. net worth) and what percentage is
provided to investors via dividends.

a statement that shows the movement of an
organization’s most important asset (cash) in and out of the business.

Question 2. Question
:

The purpose of leverage ratios in financial management is:

to measure of the amount of business being
transacted.

to use of debt and equity in a business to
increase the return on investment by owners and stakeholders.

to have the ability to easily convert assets
into cash to cover liabilities.

to have the ability to produce earnings for a
business.

Question 3. Question
:

A income statement, also known as a profit and loss
statement, is:

a statement of financial condition prepared at
the end of a set period of time that lists a company’s assets, liabilities, and
owners’ equity.

a statement that tracks a company’s revenue
and expenses over any given period.

a statement that articulates the retained
earnings/loss of the sport business (i.e. net worth) and what percentage is
provided to investors via dividends.

a statement that shows the movement of an
organization’s most important asset (cash) in and out of the business.

Question 4. Question
:

The budget for a month’s sales in a gym is 500 memberships
at $100 each. Actual sales are 550
memberships at $90 each. How would this
best be reported in a monthly budget report?

favorable membership sales

adverse selling prices

less money than we were expecting

all of the above

Question 5. Question
:

Which of the following is not a profitability ratio?

Return on assets

Return on liabilities

Return on equity

Return on investment

?

Question 6. Question
:

A budget is:

the goals of a business expressed in financial
terms.

a plan that itemizes and forecasts expected
revenues and expenses for a given period in the future.

the major operating document utilized by sport
business professionals to manage the financial aspects of the business.

all of the above.

Question 7. Question
:

Financial accounting involves:

the classification and recording of monetary
transactions of an entity.

the process of identification, measurement,
accumulation, analysis, preparation, interpretation and communication of
information.

the logical and strategic supervision and
managing of the most important asset within an organization who are the
employees.

the acquisition, sharing, and use of
intelligence, understanding, and expertise within a sport organization to aid
in the accomplishment of tasks, processes, and operations.

Question 8. Question
:

The budgeting process helps to address which of the
following questions?

Where are we now in financial terms?

What are we trying to achieve in financial
terms?

How are we going to achieve our goals in
financial terms?

All of the above

Question 9. Question
:

Which of the following are financial statements?

Profit and Loss Account

Annual Report

Cash Flow Statement

All of the above

Question 10. Question
:

Which of the following statements is true regarding
financial fundamentals?

Managerial accounting data is used by sport
facility managers to explain the in-house financial performance of the business
and to diagnose the financial health of the organization.

Financial accounting data from ratios help
managers plan their operations to achieve a desired outcome.

The direct link between financial accounting
and management accounting is the foundation of financial management.

All of the above are true.