unit test

financial performance ___ are comparisons of a company's financial elements that indicate how the business is performing.

• ratios

• variances

• statements

• indicators

the first step of the budgeting process it to

• gather accurate financial info

• calculate each type of income, expense, and amount of net income or loss

• prepare list of each type of income and expense that will be part of budget

• explain the budget to people who need to make financial decisions

sales, expenses, and profit or losses for a specific period are reported in a company's income statement.

• true

• false

Which of the following generally is NOT a goal of a business budget?

• to determine the sources and amounts of income

• to determine how income will be distributed to cover expenses

• to predict the types and amounts of expenses for the buisness

• to convince employees to take a big pay cut so business avoids bankruptcy

this shows how much profit is being made by each dollar of sales for the period being analyzed.

• return on equity ratio

• debt to equity ratio

• current ratio

• net income ratio

the cost of operating a business are called_____.

• budget

• operating

• start-up

• expenses

all of the following would be considered expenses EXCEPT

• interest earned on investments.

• taxes.

• purchases of supplies.

• wages paid to employees.

a(n) _______ budget describes the financial plan for ongoing functions of the business for a specific period.

• start-up

• operating

• expenses

• budget

which of the following would NOT be considered a benefit?

• health insurance

• a salary

• paid vacation

• unpaid vacation

all income that a business receives over a period of time is called profit.

• true

• false