Business Finance Chapter 1&2

This statement is known as the profit and loss statement.

• Balance Sheet

• Income Statement

• Retained Earning Sheet

• Statement of Changes in Owner's Equity

Which of the following is not part of the Income Statement

• operating expenses

• current assets

• sales revenue

• cost of goods sold

Product that a customer returns to the company for a full refund

• net sales

• sales return

• allowance

• gross sales

A customer receives a partial refund because the product that is purchased is damaged.

• sales return

• gross sales

• allowances

• net sales

The plastic, glass, computer chips, processor, camera, and display go into making a cell phone is known as what?

• Sales return

• Cost of Goods Sold

• Gross Profit

• Net Sales

Advertising is what type of expense.

• selling expense

• administrative expense

• salary expense

• utilities expense

A business paying rent on a building is what type of expense?

• selling expense

• administrative expense

• salary expense

• accounts payable

The bottom line number for profit or loss for the quarter is known as what?

• net sales

• gross sales

• net income

• gross profit

Profits that a business are used to open another store or expand the business are known as what?

• common stock

• retained earnings

• net income

• gross profit

Before a bank gives a loan to a company, the company will have to show the bank this number in order to get the loan because it shows the company's financial strength.

• Assets

• Liabilities

• Owner's Equity

• Net Income