key business terms, for example, turnover, cash flow, gross and net profit.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: 

• Balance Sheet
• Statement of Retained Earnings
• Statement of Cash Flows
• Income Statement

If total expenses exceed total revenue, a net loss is reported

• True
• False

What does COGS stand for?

• cost of goals scored
• cost of goods stocked
• cost of goods sold
• cost of goods solvent

How do you calculate Gross Profit?

• Sales - COGS

• Sales - NP

• COGS - Expenses

• COGS - NP

This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to.

• Income Statement
• Balance Sheet

What a company owes to creditors:

• Assets

• Liabilitites

• Equity

What are assets?

• What a company owns; anything of value owned by a business.
• Costs of operating a business.
• Detailed plans for the financial needs of individuals, families, and businesses.
• Differences between actual and budgeted performance.  

What are liabilities?

• The money paid to employees.
• Costs of operating a business.
• The act of buy items. 
• What a company owes.

Which of the following is an example of a cash in-flow for a business?

• payment to suppliers
• paying back a loan to a bank
• payment from debtors
• purchase of fixed assets

Which of the following is an example of a cash out-flow for a business?

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank