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