GymFlow, the Company Profiled in the Opening Feature in Chapter

question 44

Multiple Choice

GymFlow, the company profiled in the opening feature in Chapter 8, created a mobile app that shows how busy a gym is at any given point in time. According to the case, in regard to financial management, the cofounders of GymFlow found that ________ was one of their most difficult challenges.

• A) managing accounts payable
• B) managing accounts receivable
• C) projecting future income
• D) projecting future expenses
• E) completing financial statements

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Definitions:

Debits and Credits

Accounting entries that respectively increase asset or expense accounts and decrease liability, revenue, or equity accounts (for debits), and vice versa for credits.

Current Assets

Assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer.

Long-term Investments

Assets that a company intends to hold for more than one year, typically including stocks, bonds, or real estate, aimed at generating long-term income or appreciation.

Intangible Assets

Non-physical assets of value to a company, such as patents, trademarks, goodwill, and copyrights.