Chapter 12 Financial True/False

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

• True

• False

Financial records provide information about financial activities of a company.

• True

• False

Owners’ equity is the value of the business after liabilities are subtracted from assets.

• True

• False

An income statement usually covers a two-year period.

• True

• False

The income that a business receives over a period of time is called profits.

• True

• False

New businesses are easier to budget for than well-established businesses.

• True

• False

Financial performance ratios compare a company’s finances to its competitors.

• True

• False

With direct deposit, net pay is transferred electronically into the employee’s bank account.

• True

• False

Managers are typically the ones blamed if a business fails.

• True

• False

Financial records are usually prepared manually on paper.

• True

• False