Entrepreneurship Practice Quiz

A summary of a company’s assets and liabilities, and owners’ equity.  Shows a company’s financial condition at a given time.

• Financial Statements

• Balance Sheet

• Income Statement

• Retain Earnings

A company’s profit or earnings divided equally among all the shares investors own.  It is calculated by dividing total earnings by the number of shares outstanding.

• Accounting

• Net Income

• Gross Income

• Earnings Per Share

The amount by which a company’s costs exceed its revenue.  A loss penalizes a company for failing to produce what people want to buy and prices they’re willing to pay.

• Profit

• Gross Profit

• Loss

• Net Income

 Whatever remains after subtracting a company’s cost from its revenue.  This is a company’s reward for taking a risk and successfully producing what people want to buy at prices they’re willing to pay.

• Profit

• Dividend

• Loss

• Risk

A company owned and run by one individual who receives its profits or bears its losses.  This person is not separate from its owner, who is liable for the company’s debts.

• Partnership

• Creditor

• Proprietorship

• Company

The profit( earnings or net income) a company keeps (retains) and invests in its future growth.

• Revenue

• Retained Earnings

• Dividends

• Net Income

A summary of a company’s revenue, expenses, and income(or loss) over a period of time, such as one year.

• Cash Flow Statement

• Balance Sheet

• Income Statement

• Financial Statements

 A debt that a company owes and must repay in the future.

• Net Income

• Account Receivable

• Dividend

• Liability

Something of value that a company holds

• Asset

• Debt

• Liability

• Loss

The value of a company’s assets that belong to its owners after paying all its debts.

• Asset

• Revenue

• Loss

• Equity