Business Management- Chapter 15 Review

Systems for keeping accounting records can require no equipment or be highly computerized.

• True

• False

The use of budgets and a budgeting system guarantees the success of a business.

• True

• False

Merchandise inventory is the value of goods purchased to sell to customers at a profit.

• True

• False

Business expenses for advertising, supplies and maintenance are examples of operating expenses.

• True

• False

Accounts receivable are current assets.

• True

• False

Except for equipment, fixed assets tend to lose their value over time.

• True

• False

Most companies tend to no longer issue actual paychecks.

• True

• False

Businesses that use budgets for their financial operations are usually more successful than those that do not use budgets.

• True

• False

Cash comes into a business from two primary sources: cash receipts and checks.

• True

• False

A company can be highly profitable, yet not have enough cash on hand at the right times to pay its bills.

• True

• False