WorksheetsUnit 6 Entrepreneurship - Accounting
Total questions: 40
Worksheet time: 26mins
Amount per unit that a product contributes toward the company’s profitability before the fixed expenses are subtracted.
economics of one unit
contribution margin
unit of sale
burn rate
Variable expense that is associated with each unit of sale, including the cost of materials and labor used to provide the service.
economics of one unit
cost of goods sold (COGS)
cost of services sold (COSS)
cash flow
This is calculated by subtracting the variable expenses of the unit from the selling price of the unit.
economics of one unit
unit of sale
burn rate
fixed expense
What a customer actually buys from you.
economics of one unit
unit of sale
cash flow
fixed expense
Expense that changes based on the amount of product or service a business sells.
fixed expense
variable expense
straight line depreciation method
contribution margin
Expense that isn't affected by the number of items a business produces.
fixed expense
variable expense
cost of goods sold (COGS)
contribution margin
Money received minus what is spent over a specified period of time.
contribution margin
economics of one unit
cash flow
straight line depreciation method
Variable expense that is associated with each unit of sale, including the cost of materials and labor used to make the product.
cost of goods sold (COGS)
cost of services sold (COSS)
contribution margin
cash flow
Rate at which a company spends cash to cover overhead costs without generating a positive cash flow.
burn rate
contribution margin
cash flow
straight line depreciation method
Method used to calculate the depreciation of equipment based on how long the equipment will last.
contribution margin
cash flow
burn rate
straight line depreciation method
The contribution margin is the amount per unit a product contributes toward the company’s __________________ before the __________________ are subtracted.
profitability / variable expenses
depreciation / fixed expenses
depreciation / variable expenses
profitability / fixed expenses
Labor costs are included in the EOU calculation for a ____________.
wholesaler
manufacturer
retailer
A cash budget includes
the company's entire credit history
all cash inflows and outflows
depreciation costs for equipment
orders placed by customers but not paid for yet
If a business has $12,000 on hand and spends $3,000 a month on overhead, how long will it be able to stay in business without generating income?
4 months
6 months
10 months
12 months
Amount of money a business receives during a specific time period before expenses.
return on investment (ROI)
asset
revenue
owner's equity
Financial document that summarizes a business's income and expenses over a given time period and shows whether the business made a profit or took a loss.
income statement
balance sheet
cash flow statement
equity statement
Starting a business by yourself without any outside investment.
bootstrapping
crowdfunding
return on investment (ROI)
revenue
Funding a business by raising money from a large number of people online.
bootstrapping
crowdfunding
owner's equity
crowdshaping
Profit on an investment expressed as a percentage of the total invested.
accounts receivable
debt-to-equity ratio
return on investment (ROI)
owner's equity
Value of the business on a specific date if all the assets were sold and all the liabilities were paid.
asset
return on investment (ROI)
revenue
owner's equity
Everything owned by the business that has a monetary value.
asset
liability
accounts payable
accounts receivable
Financial statement that summarizes the assets and liabilities (debts) of a business.
balance sheet
income statement
cash flow statement
equity statement
Amount of money owed to a business by its customers for credit sales.
accounts payable
accounts receivable
asset
return on investment (ROI)
Ratio of the total debts (liabilities) of a business divided by its owner's equity.
Debt ratio
Debt-to-Equity ratio
quick ratio
operating ratio
Match the examples of items shown on financial statements with its appropriate category: Rent
long-term liability
operating expense
current asset
variable expense
Depreciation expense is usually calculated
yearly
monthly
every 2 years
quarterly
Match the examples of items shown on financial statements with its appropriate category: Mortgage
long-term liability
operating expense
current asset
variable expense
Match the examples of items shown on financial statements with its appropriate category: inventory
long-term liability
operating expense
current asset
variable expense
Match the examples of items shown on financial statements with its appropriate category: accounts payable
long-term liability
current liability
current asset
operating expense
Match the examples of items shown on financial statements with its appropriate category: supplies used to provide a service
long-term liability
variable expense
current asset
current liability
If your pre-tax profit is $5,000 and your tax rate is 25%, your net profit is
$1,312.50
$4,200
$3,750
$5,000
Sue is a beautician who worked 20 weddings last month for $200 each. Her COSS is $50 per wedding, so her gross profit last month was
$2,000
$3,000
$1,800
$4,000
If your monthly income is $8,000 and your monthly debt payments are $4,000, your bank debt ratio is
40%
50%
60%
70%
A business with a start-up investment of $15,000 and a net profit per month of $3,000 has a payback of
5 months
6 months
10 months
12 months
If a company's net profit is $50,000 and sales are $400,000, what is its return on sales?
8%
12.5%
1.25%
125%
If a company's expenses are $25,000 and sales are $500,000, what is its operating ratio?
20%
50%
5%
2%
An income statement is also called a
balance sheet
profit & loss statement
equity statement
cash flow statement
The ROI divides current assets by the net profit
True
False
The ROI divides current assets by the net profit
True
False
A good bank debt ratio is 40% or less.
True
False
