12.1 and 12.2 Mgmt Quiz

The basic financial equation is:

• revenue - profit = loss

• revenue + profit = loss

• profit - loss = revenue and expenses

• revenue - expenses = profit or loss

_________________ are amounts owed that will be paid in less than one year.

• Long-term assets

• Current assets

• Long-term liabilities

• Currently liabilities

Detailed plans for the financial needs of individuals, families, and businesses.

• budget

• cash

• revenue

• expenses

The current value of investments made by the owners of a business can be found in the

• tax records

• balance sheet

• income statement

• record of accounts

All income a business receives over a period of time is called

• Revenue

• Assets

• Expenses

• Liabilities

Lists all cash received and spent by a business

• assets records

• inventory records

• records of accounts

• cash records

The value of the buildings and equipment owned by a business can be determined in the

• inventory records

• asset records

• records of accounts

• tax records

The costs of operating a business

• expenses

• budget

• revenue

• cash

Used to record and analyze the financial performance of a business.

• depreciation

• assets

• auditing

• Financial records

Identify amount assets have decreased in value due to age and use

• asset records

• inventory records

• depreciation records

• records of accounts