Answer the following questions and submit to Chapters 13 questions. 10 questions. 4-5 sentences answer
- Why is it important to understand financial management in order to be an effective manager? Why does this process being with the balance sheet and P&L statement?
- What does the balance sheet tell a manger about her business? List three things the balance sheet does not tell a manager about her business.
- What does the P&L statement tell a manager about his business? List three things the P&L statement does not tell a manager about his business.
- What is a fiscal year? Explain why it may not coincide with a calendar year.
- What is the accounting equation? How is it used to develop a balance sheet?
- Explain when a business is solvent and insolvent. Develop an example where an agribusiness may be solvent at one point in the year and insolvent in another.
- What is the difference between current assets and fixed assets?
- What is the difference between a current and a long-term liability?
- What is owner’s equity? How is it different from net worth?
- Why are fixed assets depreciated and current assets are not? Economics homework help
