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Which statement defines a balance sheet?

A financial statement that shows what a business owns, what it owes, and how much it is work at a particular point in time

Land, buildings, furniture, and equipment are:

Fixed assts

The amount of money left after all the costs and expenses for the specific period of time have been deducted from the income is:

Net Income

The monetary value of the business is its:

Net Worth

Anything of value that a business owns is a/n:

Asset

Which would NOT be considered a fixed expense?

utilities

Robert purchased a case of lollipops from his wholesale supplier for $ The case contains 7 dozen lollipops. Robert will resell the lollipops for 25 cents each. What is the cost of goods sold per lollipop?

13 cents

Expenses are BEST described as the:

Cost of running a business

Which is NOT an example of variable costs?

Loan payment

The price the retailer pays for the merchandise sold is:

Cost of goods sold

Which is an example of a financial obligation that a business would expect to take more than one year to repay?

mortgage

The three components included on a balance sheet are:

Assets, liabilities, and net worth

. On an income statement, net sales revenue minus cost of goods sold is:

Gross profit

Which is NOT an example of operating expenses?

Sales taxes

Net income is calculated by subtracting total expenses from:

Gross profit

Why is the amount of tax due to the government calculated on the net income?

Net income represents the true profit of the company

If beginning inventory is $27,000, merchandise purchased to replenish the stock is $18,000, and the recorded ending inventory is $16,000, what is the cost of goods sold?

$29,000

If total revenue from sales for the year was $375,000 and the cost of goods sold was $190,000, how much gross profit was made from sales for the year?

$185,000

What is the total of expenses if salaries are $70,000, advertising is $12,000, rent is $14,000, utilities are $3,600, maintenance is $1,200, insurance is $1,500, and miscellaneous expenses are $1,000?

$103,300

If the gross profit is $200,000 and the total expenses are $103,300, what is the net income/profit (before taxes)?

$96,700

If the gross profit on sales is $574,000 and total expenses are $401,000, what is the net income?

$173,000

Which appears on the income statement?

Net profit

Which is a balance sheet item?

assets

Professional fees paid to an accountant or attorney for occasional work would be which type of expense?

variable

The value of a life insurance policy on the life of the business owner is which type of asset?

other

Which is NOT a factor on an income statement?

liabilities

The business lease has been renewed and the monthly lease agreement is set for the next three years. Which type of expense is each lease payment

fixed