Study Guide for Module 9

Name: Period: SCORE: _____ / 10

1. 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

2. Identify the type of budget that is described below.

describes the financial plan for plans income and expenses from an estimate of the actual money
ongoing operations of the the beginning of a new business received and paid out for a
business for a specific period of or a major business expansion specific period of time
time until it becomes profitable

3. Use the basic financial equation to determine the amount of either profit or a loss:
○ Revenue of $85,600, Expenses of $72,000 =

○ Revenue of $49,300, Expenses of $63,000 =

○ Revenue of $32,000, Expenses of $31,000 =

4. What are the two types of technology that collects financial records through means such as
scanners, touchscreens, wireless tablets, and card readers?

5. Define budget:

6. Define expenses:

7. Define revenue:

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8. Financial records determine if the ___________________ ___________________ have
resulted in success.

9. What are the 4 fundamental steps to the budgeting process?

10. What are the 2 main purposes of a business budget?

1.

2.

11. ___________________ taxes are taxes that the federal, state, and local governments
require employers to withhold from their employees’ pay; the amount withheld is based on
the wages or salary paid and the number of employee dependents.

12. When revenue is less than expenses, there is a _________________ .

13. When revenue is greater than expenses, there is a _________________ .

14. ___________________ are differences between actual and budgeted performance.

15. _________________ _________________ and Medicare (also known as

_________________ ) are required to be withheld and deposited for employees’ futures.

16. What is the goal of a business expansion?

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17. The SBA is a great source of budgeting tools and information. What does SBA stand for?

18. ___________________ ___________________ are used to record and analyze the

financial performance of a business.

19. Identify the type of financial record that is described below.

identifies the companies from identifies customers that made identifies the amount assets have
which credit purchases were purchases using credit and the decreased in value due to their
made and the amounts status of each account age and use
purchased, paid, and owed

shows all taxes collected, owed,
and paid
identifies the type and quantity of identifies the buildings and
resources and products on hand equipment owned by the
along with the current value of business, their original and
each current value, and the amount
owed if money was borrowed to
purchase the assets

20. Financial ____________________ ____________________ are comparisons of a

company's financial elements that indicate how well the business is performing.

21. _______________________ are anything of value owned by the business; whereas,

_________________ are amounts owed by the business.

22. _________________ _________________ is the value of the business after liabilities are
subtracted from assets.

23. Define net loss:

24. Define net income:

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25. Define income statement:

26. Define balance sheet:

*NOTE: You will also need to be able to identify an income statement and a balance
sheet if you see them on the test.

27. What is another name for an earnings report?

*NOTE: You will also need to be able to identify an earnings report if you see it on the test.

28. _______________________ is the financial record of employee compensation, deductions,

and net pay.

29. ____________________ taxes are collected to compensate employees who lose their
jobs through no fault of their own.

30. ____________________ ____________________ is the process by which funds are

deposited electronically and available automatically for your use.