An Entrepreneur Wants to Start a New Business and Is

question 60

Multiple Choice

An entrepreneur wants to start a new business and is writing down estimates of sales,cost of sales,and net profits. This entrepreneur is crating a

• A) balance sheet.
• B) pro-forma income statement.
• C) cash flow statement.
• D) selection of adverse impact.
• E) long-term liability.

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Definitions:

Interest-Bearing Note

A debt security that pays interest to the holder at regular intervals until maturity, at which point the principal is repaid.

Proceeds

The total amount of money received from a transaction before any deductions are made.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.

Notes Payable

Notes payable refers to the written promises to pay a certain amount of money, usually including interest, by a certain date, and are recognized as liabilities on a company's balance sheet.