Intro to business -Chp 12 Financial Management

If expenses are less than revenue, the business will suffer a loss.

• True
• False

Explaining the budget to people who need financial information to make decisions is the first step of the business budgeting process.

• True
• False

Because they are so vital to businesses, financial records are still usually prepared manually using paper documents.

• True
• False

A payroll is the financial record of employee compensation, deductions, and net pay.

• True
• False

With direct deposit, an employer transfers net pay electronically into an employee’s bank account.

• True
• False

The main source of financial information established businesses use to prepare a budget is

• the company financial records
• Small Business Administration
• The Wall Street Journal
• accountants and bankers

This is an estimate of the actual money a business received and paid out for a specific period.

• start-up budget
• operating budget
• short-term budget
• cash budget

A company’s sales and profits for a specific period are listed in the company’s (revenue and Expense) 

• income statement
• operating budget
• balance sheet
• cash budget

Liabilities are

• what a company owes
• the value of the owners’ investment in the company
• what a company owns
• what a company has on hand to sell

Which of the following payroll deductions is NOT a payroll tax?

• income tax
• Social
  Security and Medicare
• health insurance
• unemployment tax