BM21 Sp. Final #1 - 10

15 -The main purpose of financial records is to

• answer to IRS

• start a business

• stay organized

• determine profitability

15 -What kind of financial record shows what each customer purchases on credit and owes the business?

• cash receipts

• accounts receivable

• accounts payable

• owner's equity

15 -What is the key term that describes a written financial plan created for a specific time that can prevent overspending and be used to plan needed income?

• income statement

• business plan

• budget

• partnership agreement

15 -What do we call a statement of financial position that report's assets, liabilities and owners equity (capital)?

• income statement

• business plan

• budget

• balance sheet

15 -What do we call a profit and loss statement that reports information about a company's revenues and expenses for a specific period?

• income statement

• business plan

• budget

• balance sheet

15 -An asset is something of value that we ______; a liability is a debt and something we _______.

• need; want

• own; owe

• supply; demand

• buy; sell

15 -What is the amount of Total Current Assets?

• $171,900

• $21,950

• $73,900

• $149,950

15 -What is the amount of total Owner's Equity?

• $171,900

• $21,950

• $73,900

• $149,950

15 -Soapy Hands Car Wash has Total Liabilities of $250,000 and Owner's Equity of $175,000. How much are the total Assets? (Hint: use the basic accounting equation)

• $75,000

• $425,000

• $1,428,571

• $21,950

15 -According to the income statement below, Paul's Guitar Shop has a net profit of $12,950. Why do they have a profit?

• Revenue is less than expenses

• Revenue is greater than expenses

• Sales are greater than Selling expense

• Expenses are equal to revenue