question

false

answer

all income that a business receives over a period of time is called profit

question

true

answer

to prepare a budget, a business must be able to identify and predict the amount of each source of income and each type of expense

question

false

answer

an operating business will determine if a business has adequate financial resources on hand to pay bills as they become due or if it will need to borrow money

question

false

answer

an accounts receivable record identifies the companies from which credit purchases were made and the amount purchased, paid, and owed

question

true

answer

sales and profits for a specific period are reported in a company's income statement

question

true

answer

assets - liabilities = owner's equity

question

false

answer

a majority of employees in most businesses receive a weekly or monthly salary

question

true

answer

payroll taxes consist of income taxes, social security, medicare, and unemployment taxes

question

false

answer

the company's liabilities divided by the owners' equity is the current ratio

question

true

answer

at the end of the period covered by a budget, the business will prepare new financial statements

question

revenue is greater than expanses

answer

a business will make profit if

question

new factories and equipment may be needed

answer

when a business expands,

question

the business's financial records

answer

for long-established businesses, the main source of budget information is

question

the national federation of independent business

answer

all of thee following are private businesses that collect and publish financial information on similar businesses and industries except

question

to convince employees to take a big pay cut so the business can avoid bankruptcy

answer

which of the following is not generally a goal of a business budget

question

prepare a list of each type of income and expanse that will be part of the budget

answer

the first step of the budgeting process is to

question

a cash budget

answer

which type of budget is an estimate of the actual money received and paid out for a specific period

question

operating budgets are commonly prepared for all of the above time frames

answer

an operating budget is usually planned for

question

depreciation records

answer

which type of financial records identify the amount assets have decreased in value due to their age and use

question

assets

answer

in simple terms, __ are what a company owns

question

inventory

answer

which of the following is not a long-term asset

question

net income

answer

total revenue - total expanses =

question

six months or a year

answer

an income statement usually covers

question

interest earned on investments

answer

all of the following would be considered expanses EXCEPT

question

yearly

answer

which of the following is not a common way businesses pay employees

question

a salary

answer

which of the following would not be considered a benefit

question

FICA taxes

answer

employers must make matching contributions to

question

earnings report or pay stub

answer

most businesses include an __ with the employee's paycheck; this document usually includes information for the current pay period as well as the cumulative amounts for the year

question

net income ratio

answer

this shows how much profit is being made by each dollar of sales for the period being analyzed

question

make needed adjustments to the budget

answer

the final step in the financial decision-making process is to

question

expanses

answer

the costs of operating a business are called

question

budget

answer

a detailed plan for a business's financial needs is called

question

start-up

answer

an __ budget plans income and expanses from the beginning of a new business or a major business expansion until it becomes profitable

question

operating

answer

an __ budget describes the financial plan for ongoing functions of the business for a specific period

question

asset

answer

records are financial records that name the building and equipment owned by the business, their original and current value, and the amount owned if money was borrowed to purchase them

question

accounts

answer

records of __ identify all purchases and sales made using credit

question

inventory

answer

records identify the type and nu,her of products on hand for sale

question

balance

answer

a company reports its assets, liabilities, and owner's equity on the __ sheet

question

current

answer

assets include cash and those items that can be readily converted into cash

question

payroll

answer

an __ is the financial record of employee compensation, deductions, and net pay

question

self

answer

proprietors must pay ___ - employment taxes, which are contributions to medicare and social security

question

direct

answer

with ___ deposit, an employer transfers net pay electronically into an employee's bank

question

ratios

answer

financial performance ___ are comparisons of a company's financial elements that indicate how well the business is performing

question

discrepency

answer

an ___ difference between actual and budgeting performance

Principles of business chap. 12 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards