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WorksheetsPBMF Chapter 12 Section 2 Financial Records and Statements
Total questions: 23
Worksheet time: 17mins
Name
Class
Date
1.
An accounts receivable record identifies the companies from which credit purchases were made and the status of each account.
a)
true
b)
false
2.
Sales, expenses, and profits or losses for a specific period are reported in a company’s income statement.
a)
true
b)
false
3.
Assets – Liabilities = Owner’s Equity.
a)
true
b)
false
4.
At the end of the period covered by a budget, the business will prepare new financial statements.
a)
true
b)
false
5.
A business will make a profit if
a)
revenue equals expenses.
b)
revenue is greater than expenses.
c)
expenses decrease and revenue increases.
d)
expenses are greater than revenue.
6.
When a business expands,
a)
profits will increase.
b)
employees will likely be fired.
c)
marketing activities can be put on hold temporarily.
d)
new factories and equipment may be needed.
7.
For businesses that have operated for several years, the main source of budget information is
a)
the business’s financial records.
b)
the Internet.
c)
the Small Business Administration.
d)
business magazines and newspapers.
8.
Which of the following generally is NOT a goal of a business budget?
a)
to determine the sources and amounts of income
b)
to predict the types and amounts of expenses for the business
c)
to convince employees to take a big pay cut so the business can avoid bankruptcy
d)
to determine how income will be distributed to cover expenses
9.
The first step of the budgeting process is to
a)
prepare a list of each type of income and expense that will be part of the budget.
b)
calculate each type of income, expense, and the amount of net income or loss
c)
explain the budget to people who need to make financial decisions
d)
gather accurate financial information
10.
Which type of budget is an estimate of the actual money received and paid out for a specific period?
a)
an accounting budget
b)
a final budget
c)
a cash budget
d)
a balanced budget
11.
An operating budget is usually planned for
a)
three months.
b)
six months.
c)
one year.
d)
all of these time frames.
12.
Which type of financial records identify the amount assets have decreased in value due to their age and use?
a)
asset records
b)
depreciation records
c)
cash records
d)
accounts payable records
13.
_ are what a company owns.
a)
assets
b)
profits
c)
owner’s equity
d)
revenues
14.
Which of the following usually is NOT a long-term asset?
a)
land
b)
inventory
c)
buildings
d)
equipment
15.
Revenue > Expenses =
a)
Assets
b)
Owner’s Equity
c)
Net Loss
d)
Net Income
16.
An income statement usually covers
a)
one to two years.
b)
one week.
c)
three to six months or less.
d)
five years.
17.
All of the following would be considered expenses EXCEPT
a)
wages paid to employees.
b)
interest earned on investments.
c)
purchases of supplies.
d)
taxes.
18.
The costs of operating a business are called _
a)
liabilities.
b)
expenses.
c)
revenues.
d)
Owner's equity
19.
Include cash and those items that can be readily converted into cash.
a)
current assets
b)
long-term assets
c)
revenue
d)
cash-flow budget
20.
Financial records that name the buildings and equipment owned by the business, their original and current value, and the amount owned if money was borrowed to purchase them
a)
asset records
b)
account records
c)
payroll records
d)
debt records
21.
The financial record of employee compensation, deductions, and net pay
a)
payroll
b)
human resources
c)
employee earnings record
d)
electronic funds transfer
22.
A company reports its assets, liabilities, and owner’s equity on the _.
a)
income statement
b)
balance sheet
c)
operating budget
d)
statement of owner's equity
23.
_identify the type and number of products on hand for sale.
a)
Asset records
b)
Inventory records
c)
Start-up budgets
d)
Expense reports
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