A manager records, summarizes, and reports a store's money activity so owners and lenders can make decisions. What is this system called?

A formal report of a business's financial results or financial position, such as a report of revenue and expenses or a report of assets and debts, is called what?

Bloom Bakery sold $900 of cupcakes before subtracting any costs. Which income statement term names the $900?

A shoe store paid suppliers $4,000 for the shoes that customers bought from it this month. Which term names that direct cost?

Customers of Harbor Office Supply bought goods on 30-day credit and still owe the business. Which account holds those amounts?

A retailer's cash and inventory are expected to be used or sold within one year. What balance sheet category do they fit?

A landscaping firm's truck and mower will be used for several years. What category do these items fit?

River Café owes a supplier bill due in 30 days. What balance sheet category is that bill?

After a business subtracts its liabilities from its assets, what term names the amount that remains?

A T-shirt shop reaches the sales level where total revenue equals total costs. What is that point called?

Before opening, a food truck needs money for the truck, permits, and starting inventory. What general term names these funds?

An outside firm examines a company's accounting records to confirm the statements are accurate. What is this examination called?

What does an accountant usually do for a business?

In business accounting, what does bookkeeping mean?

What does an income statement show?

What does a balance sheet show?

In accounting, what does depreciation measure?

What is a budget for a business?

What does contribution margin mean for each unit sold?

What does debt financing mean?

What does equity financing mean?

What is a fiscal year?

Maya's Music has $5,000 in sales and $3,000 in cost of goods sold. Which figure is gross profit?

An income statement lists revenue of $12,000, cost of goods sold of $5,000, and operating expenses of $4,000. What is net income?

Oak Street Games had $6,000 in revenue and $7,500 in total expenses. Which result should its income statement report?

A balance sheet lists assets of $20,000 and liabilities of $8,000. Using $\text{Assets}=\text{Liabilities}+\text{Owner’s Equity}$, what is owner's equity?

North Pier Rentals earned a profit on paper, but customers will not pay invoices until next month and payroll is due today. What problem is most likely?

Skyline Signs pays $1,200 rent plus $6 of materials for each sign. If it makes 100 signs, what is total cost?

A candle stand has fixed costs of $600, sells candles for $10, and has variable cost of $4 per candle. How many candles is the break-even point?

GreenTech borrows $10,000 from a bank and must pay an extra $800 for using the money for one year. What is the $800 called?

A report for Luna Labs shows money received from customers, money paid to suppliers, and the money left in its bank account at the end of March. What statement is this?

A person gives a startup $50,000 in exchange for part ownership rather than a promise of repayment. What role is that person taking?

A store had $9,000 in sales and $6,500 in total costs this month. Is the $2,500 left over revenue or profit?

Revenue minus cost of goods sold gives a figure reported before operating expenses are subtracted. Which term names it?

A supplier has shipped inventory to Juno Books, and Juno Books still owes the supplier. Is this accounts payable or accounts receivable for Juno Books?

A bakery's flour cost rises when it bakes more loaves. Is flour a fixed cost or a variable cost?

A salon buys a styling chair it expects to use for five years. Should the salon record the chair as an asset or as an expense?

Juniper Florist takes out a bank loan to buy a delivery van. On the balance sheet, is the loan a liability or owner's equity?

A manufacturer signs a bank loan due in five years. Is the loan a current liability or a long-term liability?

A gym's monthly rent stays the same whether it serves 200 members or 500 members. Is rent a fixed cost or a variable cost?