Chapter 14 Quiz

A business budget anticipates sources and amounts of income.

• True

• False

Expenses include the total revenue minus operating costs of the small business.

• True

• False

After several years of operation, the task of identifying sources of income and types of expenses becomes easier for a business owner.

• True

• False

The Small business Administration (SBA) provides a number of planning tools for new small business

• True

• False

The most important step in financial planning is developing an income statement.

• True

• False

In a small business, the budging goals are much the same as in a household-- to determine what the sources of income are and how will be distributed.

• True

• False

Few skills are needed by the person responsible for preparing business budgets.

• True

• False

Budgets identify the financial plans of a business.

• True

• False

All successful businesses maintain accurate financial records.

• True

• False

Net income results when costs are greater than revenue.

• True

• False