PoB Ch 12 Review

Front

Sales and profits for a specific period are reported in a company’s income statement.

Back

True

Front

Business expansion plans typically occur in a short time period and do not require much expense. True or False?

Back

False

Front

A business should not compare its financial performance with that of similar companies.

Back

False

Front

Payroll taxes consist of income taxes, Social Security, Medicare, and unemployment taxes. True or False?

Back

True

Front

Managers and professionals usually earn an hourly wage.

Back

False

Front

Employee benefits (401k plans, insurance, etc) do not affect an employee's pay.

Back

False

Front

All of the following would be considered expenses EXCEPT: wages paid to employees, purchases of supplies, taxes.

Back

sales to customers

Front

Most businesses include a(n) _______________ with the employee’s paycheck; this document usually includes information for the current pay period as well as the cumulative amounts for the year.

Back

earnings report or pay stub

Front

Which of the following financial planning questions are asked when beginning a business? How much money will be needed to start the business? Where will financing come from? How will funds be obtained to operate until business is profitable?

Back

all of the above

Front

Employers must make matching contributions to

Back

FICA (Social Security and Medicare) taxes