Marketing & Entrepreneurship IA3 Prep

1. Inventory is an _____.

• asset

• expense

• none of the above

Cash is an _____.

• asset

• exense

• none of the above

Advertising is an _____.

• asset

• expense

• none of the above

The goods and materials available for sale at the beginning of a period are _______.

• beginning inventory

• costs of goods sold

• ending inventory

• raw materials

The cost of the merchandise that was sold to customers is

• beginning inventory

• costs of goods sold

• ending inventory

• raw materials

Checkout counters are an example of this operating expense _____.

• rent

• advertising

• equipment

• fixtures

______ is the total amount a business earns before any deductions, such as taxes, are taken out.

• gross income

• break even point

• net income

Use this formula to help solve the problem.

- gross income = total of all incomes added together

Given the following information what does the gross income for the month equal?

Cash = $100, Checks = $200, Credit Card

• $300

• $500

• $600

• $700

A financial statement that shows the revenue and expenses of a business for a specific time period and determines if a business has a profit or a loss is called

• income statement

• cash flow statement

• balance sheet

The "who" part of the heading is _____.

• The Forks Gym

• Income Statement

• For the Month Ended August 31, xxxx