FSE2202 FUNERAL HOME MANAGEMENT STUDY QUESTIONS LESSON
2.2 EXAM QUESTIONS AND ANSWERS VERIFIED
The amount by which the total assets exceed the total liabilities of a business; an
owner's financial interest in a business.
Capital (net worth; owner's equity; proprietorship)
Define Working Capital.
Difference between current assets and current liabilities
A formal written statement, which may be based upon adjusted historical data, of
management's plans for the future expressed in financial terms
Budget
Define Personal Capital.
Capital that is invested in the business by owner
Define Debt Equity.
Any borrowed or loaned capital invested in the business that must be repaid to the
creditors
List some sources of funding to purchase a funeral home.
• Cash
• Financing
• Debt Capital
• Short term notes
Describe factoring.
Obtaining cash before payments are received from customers by selling off ones
account receivables to a third party
2.2 EXAM QUESTIONS AND ANSWERS VERIFIED
The amount by which the total assets exceed the total liabilities of a business; an
owner's financial interest in a business.
Capital (net worth; owner's equity; proprietorship)
Define Working Capital.
Difference between current assets and current liabilities
A formal written statement, which may be based upon adjusted historical data, of
management's plans for the future expressed in financial terms
Budget
Define Personal Capital.
Capital that is invested in the business by owner
Define Debt Equity.
Any borrowed or loaned capital invested in the business that must be repaid to the
creditors
List some sources of funding to purchase a funeral home.
• Cash
• Financing
• Debt Capital
• Short term notes
Describe factoring.
Obtaining cash before payments are received from customers by selling off ones
account receivables to a third party
