Chapter 12 Quiz Review

Most start-up businesses can be opened with a minimum of expenditures.

• True

• False

Financial records provide detailed information about the financial activities of a company.

• True

• False

Owners' equity is the value of the business after liabilities are subtracted from assets.

• True

• False

An income statement usually covers a five-year period.

• True

• False

The income that a business receives over a period of time is called profits.

• True

• False

When expenses are greater than income, a net loss occurs.

• True

• False

Financial performance ratios compare a company's financial elements to its competitors.

• True

• False

With direct deposit, net pay is transferred electronically into the employee's bank account.

• True

• False

Unscramble the vocabulary word from Chapter 12: yalplor

Unscramble the vocabulary word from Chapter 12: tasess