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WorksheetsEntrepreneurship - Finance Vocab
Total questions: 15
Worksheet time: 15mins
What is an expense?
money made from products/services
money spent on resources for the business
a budget
A variable expense differs from a fixed expense because...
it stays the same
they are the same
it changes
Which of the following is an example of a fixed expense?
delivery expenses
labor
insurance
materials
Which of the following is an example of a variable expense?
salaries
labor
rent
interest
The amount of product (or service) you use to figure your operations and profit.
unit of sale
materials
variable expense
profit
The Economics of one Unit of Sale =
Profit (Loss) = Sales price - cost
Revenue = Sales price - cost
Profit = Revenue - Sales
Contribution Margin = Selling price - variable expenses
If a company has economies of scale, they are able to
spread costs over a larger volume of product
spread costs over a smaller volume of product
buy less material and sell more
buy more material and sell more
What is an acronym to remember the common fixed costs?
I SAID U ROX
I SAID YOU ROC
I SED U ROX
I SAID YOU ROCK
What is an accounting method that allows you to spread the cost of equipment over the # of years it is used.
Depreciation
value
assets
liabilities
Break Even =
Sales = Expenses
Profit = Expenses
Revenue = Fixed Expenses
Sales = Variable Expenses
A company must keep track of its cash flow.
TRUE
FALSE
Making a(n) ___________ allows you to predict how much you will sell in the future.
sales forecast
Income statement
balance sheet
A financial document that shows how much a company makes and spends over a given period of time.
income statement
balance sheet
cash flow statement
Income Statements should be prepared...
monthly
quarterly
annually
all of the above
A financial document where a business records assets and liabilities.
income statement
balance sheet
cash flow statement
