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Canadian entrepreneurs are falling short when it comes to understanding the basics of business finance, a survey released this week by Mississauga, Ont.-based accounting software firm Intuit Canada concludes. Of the 683 Canadian small business owners polled, 57% were unable to pass a short, multiple-choice financial literacy test. That’s despite 93% of respondents saying their understanding of finance was at least average, if not advanced.

When it came to testing entrepreneurs on their knowledge of specific financial concepts, the findings were no more promising. The survey found, for example, that only 26% understood the purpose of a balance sheet, and a mere 2% managed to correctly answer all 10 questions on the quiz.

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While the survey’s findings are troubling, they aren’t surprising.

While it may be critical for business owners to understand both their personal and professional finances — and for entrepreneurs, the two are inherently intertwined — business owners aren’t accountants. Most entrepreneurs start companies based on an idea or some level of pre-existing expertise, not financial knowledge. That said, ensuring long-term business survival does require entrepreneurs to have a deeper understanding of a handful of key principles.