Chapter 12 Exam

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All income that a business receives over a period of time is called:

• Expenses
• Revenue
• Profits
• All of the above

The ______________ Statement is a report that will list all revenue and expenses for a single fiscal year.

• Income
• Balance Sheet
• None of the above
• All of the above

Sales and profits for a specific period are reported in a company's income statement.

• true
• False

The ______________ sheet is a report that will compares a company's assets and liabilities.

• Income
• Balance
• None of the above
• All of the above

Assets - Liabilities = Owner's Equity

• True
• False

Payroll taxes consist of income taxes, social security, Medicare, and unemployment taxes.

• True
• False

The company's liabilities divided by the owner's equity is the current ratio.

• true
• false

At the end of the period covered by a budget, the business will prepare new financial statements

• True
• False

A business will make a profit if

• revenue equals expenses
• revenue is greater than expenses
• expenses decrease & revenue increases
• expenses are greater than revenue