assessment

Assessment

1.       True or false. Financial planning is needed by small businesses only until they begin to make a profit.

2.       The basic financial equation is

a.       Revenue- profit = loss

b.      Expenses + revenue = profit or loss

c.       Profit – loss = revenue and expenses

d.      Revenue – expenses = profit or loss

3.       True or false. A cash budget is an estimate of the actual money received and paid out for a specific period.

4.      

a.       $85,695-$72,624= $13,071

b.      $1,824,300-$2,183680= $ -359380

c.       $729,655-$499,220= $ 230435

check points

Checkpoints

1.       What is the basic financial equation for businesses? Revenue – expenses = profit and loss

2.       Identify and describe the three types of budget needed by all businesses. Start up budget- plans income and expenses form the beginning of a new business, operating budget – is the money used to operate the business to continue you cash flow, and cash budget is the actual money received and paid out of a period of time.

vocab

Vocabulary

1.       Revenue – a income that a business receives over a period of time.

2.       Expenses- are the 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 beginning of a new business or a major business expansion until it is profitable

5.       Operating budget –describes the financial plan for ongoing operations of the business for a specific period

6.       Cash budget-  is an estimate of the actual money received and paid out for a specific period of time