Entre Final Rev

Most new businesses earn less money than they spend at first.

• True

• False

An income statement shows a profit if a business’s sales are ______________ than its expenses.

• Greater

• Less

Long-term assets can be converted to cash within one year.

• True

• False

Liabilities are not items of value that a business owns.

• True

• False

Owner’s equity does not equal total liabilities minus total assets.

• True

• False

Accounts receivable is money owed to others.

• True

• False

Entrepreneurs should calculate what their start-up expenditures will be.

• True

• False

Cash reserves is money that you spend on start-up equipment.

• True

• False

Credit unions and banks do not require someone to co-sign a loan for you.

• True

• False

Employees mean more paperwork and expenses for the business owner.

• True

• False