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Chapter 10 - Finance

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Owners equity refers to the value of the owners money in the business.

a)

True

b)

False

2.

Assets = Owners Equity - Liabilities

a)

True

b)

False

3.

A salary is a fixed cost.

a)

True

b)

False

4.

Cost per unit is calculated by dividing the total costs by the number of units produced.

a)

True

b)

False

5.

The steps in the feasibility study include: 1 – Describe the business, 2 – Describe the market, 3 – Is it viable?

a)

True

b)

False

6.

Liability insurance covers the business against dishonest employees.

a)

True

b)

False

7.

Insurance is a means for the business to transfer their risk.

a)

True

b)

False

8.

Premium is a monthly contribution made to the insurance company to ensure cover.

a)

True

b)

False

9.

Variable costs differ according to the units produced.

a)

True

b)

False

10.

Bad debt is something that one can easily insure.

a)

True

b)

False