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Unit 10: Chapter 12 Test

Total questions: 28

Worksheet time: 1hrs 24mins

Name
Class
Date
1.

What is defined as all income that a business receives over a period of time or government income?

a)

Revenue

b)

Expenses

c)

Assets

d)

Liabilities

2.

What is the cost of operating a business called?

a)

Revenue

b)

Expenses

c)

Budget

d)

Payroll

3.

What are detailed plans for the financial needs of individuals, families, and businesses called?

a)

Budget

b)

Startup Budget

c)

Operating Budget

d)

Balance Sheet

4.

What type of budget plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable?

a)

Startup Budget

b)

Operating Budget

c)

Budget

d)

Income Statement

5.

What describes the financial plan for ongoing operations of the business for a specific period of time?

a)

Operating Budget

b)

Startup Budget

c)

Balance Sheet

d)

Financial Record

6.

What are financial documents used to record and analyze the financial performance of a business called?

a)

Financial Performance Record

b)

Balance Sheet

c)

Income Statement

d)

Payroll

7.

What is defined as anything of value owned by a business?

a)

Assets

b)

Liabilities

c)

Revenue

d)

Expenses

8.

What is defined as what a company owes?

a)

Liabilities

b)

Assets

c)

Balance Sheet

d)

Financial Ratios

9.

What report lists the company's assets, liabilities, and owner's equity at a specific point in time?

a)

Balance Sheet

b)

Income Statement

c)

Operating Budget

d)

Financial Record

10.

What report provides information on revenue, expenses, and net income or loss from operations for a specific period?

a)

Income Statement

b)

Balance Sheet

c)

Operating Budget

d)

Startup Budget

11.

What is the financial record of employee compensation, deductions, and net pay called?

a)

Payroll

b)

Financial Record

c)

Income Statement

d)

Budget

12.

What is the comparison of a company's financial elements that indicate how well the business is performing called?

a)

Financial Performance Ratios

b)

Balance Sheet

c)

Income Statement

d)

Assets

13.

The three most important financial reports are:

a)

Revenue Report, Shareholder Equity, Profit Analysis

b)

Profit Analysis, Balance Sheet, Cash Flow Statement

c)

All answers are correct

d)

Income Statement, Balance Sheet, Cash Flow Statement

14.

Operating Expenses include:

a)

Rent on office space

b)

Office Supplies

c)

Salaries and Wages

d)

All answers are correct

15.

“NET INCOME also known as NET PROFIT” is:

a)

Profit before you pay taxes and interest

b)

Profit before you deduct operating expenses

c)

The money used to pay taxes and health benefits

d)

Profit left over after all the expenses have been deducted from your total revenue

16.

A balance sheet reports:

a)

A company's cash position and assets

b)

A company's profit, loss and expenses

c)

a company's assets on one side, and liabilities, and shareholder equity on the other

d)

None of the answers are correct

17.

"Accounts Receivable" is the money:

a)

deducted from net income

b)

owed before taxes

c)

owed by you the company

d)

owed to you but not yet received

18.
Assets = Liabilities + Owner's Equity
Assets - 100,000
Liabilities- 25,000
Owner's Equity- ?
a)
125,000
b)
75,000
c)
25,000
d)
100,000
19.
Assets = Liabilities + Owner's Equity
Assets - 200,000
Liabilities- ?
Owner's Equity- 90,000
a)
200,000
b)
290,000
c)
110,000
d)
90,000
20.
Assets = Liabilities + Owner's Equity
Assets - ?
Liabilities- 25,000
Owner's Equity- 100,000
a)
125,000
b)
75,000
c)
25,000
d)
100,000
21.
The accounting equation is
a)
Assets = Liabilities + Owner's Equity
b)
Assets = Liabilities - Owner's Equity
c)
Assets - Owner's Equity + Liability
22.
The Accounting Equation must always be in balance? 
a)
True
b)
False
23.
______is a financial statement that reports a business's assets, liabilities, and capital on a specific date.
a)
Balance Sheet
b)
Income Statement
c)
Statement of Cash Flows
d)
None of the Above
24.

A restaurant spent $12,000 to run their business last month. They made $15,000. Did they make a profit or have a loss?

a)

Profit

b)

Loss

25.

An ice cream shop spent $5,000 last month to run their business. They made $3,000. Did they make a profit or have a loss?

a)

Profit

b)

Loss

26.

A pet store spent $17,000 last month to run their business. They made $20,000 last month. Did they make a profit or have a loss?

a)

Profit

b)

Loss

27.

Total Revenue- Cost of Goods Sold = Gross Profit

Income = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

28.

Total Revenue- Cost of Goods Sold = Gross Profit

Gross Profit - Total Operating Expenses- Taxes = Net Profit

Net Profit = 500

Income = 2000

Expenses = 1000

Taxes = 200

Cost of Goods Sold = ?

a)

1500

b)

1000

c)

3000

d)

300