Entrepreneurship 2 Honors: Unit 5

the excess of net sales over the cost of goods sold

• net profit

• net income

• revenue

• gross profit

a financial statement that gives operating results for a specific period of time

• income statement

• statement of cash flow

• balance sheet

• statement of owner's equity

Revenues - Expenses = _________?

• gross profit

• cost of goods sold

• net income

• sales

the amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies

• gross profit

• cost of good sold

• operating expenses

• net profit

An increase in owner's equity resulting from the operation of a business; sales

• revenue

• income

• gross profit

• asset

What is the accounting equation?

• revenue - expenses

• assets + liabilities = owner's equity

• revenue - cost of goods sold

• assets = liabilities + owner's equity

the total amount of money being transferred into and out of a business, especially as affecting liquidity.

• assets

• liabilities

• equity

• cash flow

A decrease or loss in value

• depreciation

• liability

• owner's equity

• expenses

Amounts to be paid in the future for goods or services already acquired

• accounts payable

• accounts receivable

• assets

• profit

Amounts to be received in the future due to the sale of goods or services

• liabilities

• dividends

• accounts receivable

• equity