Money in Business

How do you find taxable income?

• Annual Gross - Deductions

• Annual Gross + deductions

• Assets= liability + owner's equity

• Assets + Liability = Owner's equity

Taxes are simple to calculate. Everyone pays 25%

• True

• False

Companies that have a taxable income of 49,000 and 150,000 pay the same rate.

• True

• False

If Gabriel, Inc earns $60,000. They have $20,000 in deduction. How much do they pay in taxes if the tax rate from 0-50,000 of taxable income is 15%. Show your working.

The (a)   statement shows revenue and expenses.

Finish the formula. Assets = (a)   + Owner's equity

How do we find net income?

• subtract the revenue from the expenses

• add the expenses to the revenue

• multiply the expenses and the sales

• subtract the expenses from the revenue

What percentage of my sales is my net income if my total sales were $10,000 and my net income was $4556? Show your work.

Assets = Liabilities + Owner's equity is called the..

• formula for sales

• accounting equation

• financial record

• income statement

This accounting document shows that the assets equal the liabilities plus the owner's equity.

• balance sheet

• income statement

• tax record

• ledger