B&T Financial Man, INventory and Record Keeping

What are the two types of accounting records a small business owner should keep?

• journals and ledgers

• reconciliations and balances

• registers and ledgers

• none of these

What is the Accounting Equation

• Assets = Liabilities - Owner's Equity

• Assets = Liabilities + Owner's Equity

• Assets - Liabilities = Owner's Equity

• None of these

Inaccurate or incomplete financial records can cause a business owner to:

• Mismanage their business

• Experience serious legal problems

• Both of these

• None of these

It is not necessary for an accountant to keep up with sales tax information.

• True

• False

• It doesn't matter

• None of these

How does one calculate owner's equity?

• Assets - Liabilities = Owner's Equity

• Assets + Liabilities = Owner's Equity

• Assets = Owner's Equity

• None of these

A Balance Sheet

• Includes Assets on the right side

• Includes Assets on the left side

• Includes Liabilities and Owner's Equity on the right side

• Two of these

What two items do you always list on an Income Statement?

• Revenue and Expenses

• Cost of Merchandise sold

• Both of these

• None of these

Assets are:

• Items of value that you own

• What you owe to others

• Your Equity

• None of these

The Cash Flow Statement

• Describes the cash that flows in and out of a business

• Shows how much money your business has right now

• Deals with actual cash coming in and out

• All of these

If you have a negative cash flow

• You may not be able to pay your bills

• You may have to borrow money

• Your disbursements are greater than your receipts

• All of these