Unit 3 Review

_____ is/are the assets used as a guarantee or security for the payment of a loan Raw materials Accounts Receivable Collateral None of the above

Collateral

The sales level when a company's income equals its expenses is called _____. gross income break-even point net income cash flow

break-even point

The accounts that make up an income statement are _____. capital expenses revenue assets

expenses revenue

A net income for a business is shown on a(n) _____. balance sheet income statement cash flow none of the above

income statement

The correct formula to calculate interest paid is _____. loan amount X interest rate = interest paid loan amount + interest rate = interest paid loan amount - interest rate = interest paid none of the above

loan amount X interest rate = interest paid

The three main parts of a balance sheet are _____. owner's equity capital liabilities assets

owner's equity liabilities assets

The monthly expenses acquired when running a business are called _____. beginning inventory ending inventory operating expenses start-up costs

operating expenses

Expenses that need to be paid before a new business can open are called _____. operating expenses ending inventory beginning inventory start-up costs

start-up costs

The correct formula to measure the Cost of Goods Sold is _____. Beginning Inventory - Inventory Purchases + End Inventory = Cost of Goods Sold Beginning Inventory + Inventory Purchases - End Inventory = Cost of Goods Sold Beginning Inventory + Inventory Purchases + End Inventory = Cost of Goods Sold none of the above

Beginning Inventory + Inventory Purchases - End Inventory = Cost of Goods Sold

An amount charged for borrowing money is called _____. interest gross income interest rate net income

interest