1. True or False. financial planning is needed by small businesses only until they begin to make a profit. (false)
2. The basic financial equation is (d- revenue-expenses= profit or loss.)
3. True or false. A cash budget is an estimate of the the actual money received and paid out for a specific period. (true)
5. A) 85,695-72,624= 13,071
B) 1,824,300-2,183,680=-359,380
C) 729,655-499,220= 230,435
Tuesday, April 12, 2011
Chapter 12 section 1 checkpoint questions
What is the financial equation for businesses?
revenue- expenses= profit.
What are the four steps in preparing a business budget?
1. Prepare a list of each type of income and expense that will be a part of the budget
2. Gather accurate inforamtion from business records and other inforamtion sources for each type of income and expense.
3. Creat the budget by calculation each type of income, expense, and the amount of net income or loss.
4. explaine the budget to people who need financial information to make decisions.
indentify and describe the three types of budgets needed by all businesses.
1. Start-up budget- plans income and expences from the beggnning of a new business or a major business expantion until it becomes profit.
2. operating budget- describes the financial plan for ongoing operations of the business for a specific period.
3. cash budget- is an estimate of the actual money received and paid out for a specific period.
revenue- expenses= profit.
What are the four steps in preparing a business budget?
1. Prepare a list of each type of income and expense that will be a part of the budget
2. Gather accurate inforamtion from business records and other inforamtion sources for each type of income and expense.
3. Creat the budget by calculation each type of income, expense, and the amount of net income or loss.
4. explaine the budget to people who need financial information to make decisions.
indentify and describe the three types of budgets needed by all businesses.
1. Start-up budget- plans income and expences from the beggnning of a new business or a major business expantion until it becomes profit.
2. operating budget- describes the financial plan for ongoing operations of the business for a specific period.
3. cash budget- is an estimate of the actual money received and paid out for a specific period.
Chapter 12 section 1 vocab
Revenue- is all the income that a business receives over a period of time.
Expences- costs of operating a bubusiness
Budget- a detailed plans for the financial needs of individuals, families, and businesses.
start-up budget- plans income and expences from begginning of a new business or a major business expansion until it becomes profitable.
operating budget- the financial plan for ongoing operations of the business for a specific period.
Cash budget- is an estimate of the actual money received and paid out for a specific period.
Expences- costs of operating a bubusiness
Budget- a detailed plans for the financial needs of individuals, families, and businesses.
start-up budget- plans income and expences from begginning of a new business or a major business expansion until it becomes profitable.
operating budget- the financial plan for ongoing operations of the business for a specific period.
Cash budget- is an estimate of the actual money received and paid out for a specific period.
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