Intro: Ch. 12

All income that a business receives over a period of time.

• Expenses

• Profit

• Revenue

• Operations

What does an operating budget describe?

• The financial plan for starting a new business

• The financial plan for ongoing operations of the business for a specific period

• The estimate of actual money received & paid out for a specific period

• The detailed plans for the financial needs of individuals

What is a budget?

• A plan for income and expenses for a new business

• A description of a business's revenue

• Detailed plans for the financial needs of individuals, families, and businesses

• The costs of operating a business

What are expenses in the context of a business?

• The profit or loss of a business

• The income a business receives

• The costs of operating a business

• The financial plan for a business

What is the purpose of a start-up budget?

• To estimate the actual money received and paid out for a specific period

• To plan income & expenses from the beginning of a new business or major expansion until it becomes profitable

• To describe the financial plan for ongoing operations of the business

• To provide detailed plans for the financial needs of individuals

Which of the following is NOT a part of the ongoing operations of a business?

• Payment of employees

• Ordering of supplies & materials

• Revenue

• Technology updates

How is profit or loss calculated in a business?

• Revenue + expenses

• Revenue - expenses

• Expenses - revenue

• Expenses / revenue

What is a cash budget?

• A plan for income & expenses for a new business

• A description of a business's revenue

• An estimate of the actual money received & paid out for a specific period

• The costs of operating a business

What can happen if planning for expansion of a business is not done correctly?

• The business may result in losses rather than profits

• The business will increase its profits

• The business will not be affected at all

• The business will reduce its operational costs

Which of the following is NOT a skill needed to prepare a business budget?

• Computer

• Communication

• Negotiation

• Financial analysis