Entrepreneurship Unit 6 Test

Any expense that connects directly with making the products you sell is called which two of the following terms?

There are two answers.

• variable costs

• cost of goods sold

• fixed costs

What is Liz’s total revenue for one month?

• $1250

• $835

• $415

What is the profit Liz makes from her sales before paying her fixed costs?

• $835

• $415

• $525

What is Liz’s profit margin for the month? 

• 58%

• 42%

What is Liz’s net profit after paying all her bills?

• $415

• $1250

• $725

• 25 units

• 3.79 units

• 5.24 units

Supplies to make the macrame decorations

• Asset

• Liability

Cash in her business bank account.

• Asset

• Liability

Credit card used to order shipping boxes.

• Asset

• Liability

Money she owes her mom for investing into her business.

• Asset

• Liability