1. True or False ; Financial planning is needed by small businesses only until they begin to make a profit?
- False
2. The basic financial quation is ?
- D
3. True or False ; A cash budget is an estimate of 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 CheckPoints
CheckPoints!
1. What is the basic financial equation for businesses?
- Revenue - Expenses = Profit or Loss
2. What are the four steps in preparing a business budget?
- Prepare a list of each type of income and expense that will be a part of the budget.
- Gather accurate infromation from business records and other infromation sources for each type of income and expense.
- Create the budget by calculating each type of income, expense, and the amount net income or loss.
- Explain the budget to people who need financial information to make decisions.
3. Identify and describe the three types of budgets needed by all businesses.
- Start -Up Budget ; Plan income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
- Operating Budget ; Describes the financial plan for ongoing operation of the business for a specific period.
- Cash Budget ; An estimate of the actual money received and paid out for a specific period.
1. What is the basic financial equation for businesses?
- Revenue - Expenses = Profit or Loss
2. What are the four steps in preparing a business budget?
- Prepare a list of each type of income and expense that will be a part of the budget.
- Gather accurate infromation from business records and other infromation sources for each type of income and expense.
- Create the budget by calculating each type of income, expense, and the amount net income or loss.
- Explain the budget to people who need financial information to make decisions.
3. Identify and describe the three types of budgets needed by all businesses.
- Start -Up Budget ; Plan income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
- Operating Budget ; Describes the financial plan for ongoing operation of the business for a specific period.
- Cash Budget ; An estimate of the actual money received and paid out for a specific period.
Chapter 12 Section 1 Voacb
Voacbulary ;
1. Revenue ; All income that a business receives over a period of time.
2. Expenses ; Cost of operating a business.
3. Budget ; Provides detailed plans for the financial needs of individuals, families, and businesses.
4. Start-Up Budget ; Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
5.Operating Budget ; Describes the financial plan for ongoing operations of the business for a specific period.
6. Cash Budget ; An estimate of the actual money received and paid out for a specific period.
1. Revenue ; All income that a business receives over a period of time.
2. Expenses ; Cost of operating a business.
3. Budget ; Provides detailed plans for the financial needs of individuals, families, and businesses.
4. Start-Up Budget ; Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
5.Operating Budget ; Describes the financial plan for ongoing operations of the business for a specific period.
6. Cash Budget ; An estimate of the actual money received and paid out for a specific period.
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