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

• True

• False

Budgeting is much easier for a new business than for a well-established business.

• 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

Records of accounts identify all purchases and sales made using credit.

• True

• False

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

• True

• False

There is no point in comparing your financial statements with those of another company.

• 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 net income ratio will show the rate of return the owners are getting on the money they invested in the company.

• True

• False

Managers are usually held accountable if their part of the company faces financial problems.

• True

• False