BM 15T

By subtracting total projected costs and expenses from projected sales, a business can estimate its profit.

• True

• False

A company can be highly profitable yet not have enough cash on hand at the right times to pay its bills.

• True

• Fasle

Businesses that use budgets for their financial operations are usually more successful than those that do not use budgets.

• True

• False

An examination of a company's financial records by an expert in order to verify their accuracy is called an audit.

• True

• False

Many companies no longer issue actual paychecks to employees.

• True

• False

Except for equipment, fixed assets tend to lose their value over time.

• True

• False

Accounts receivable are current assets.

• True

• False

When a petty cash fund is used, it is NOT necessary to keep a written record of all money paid out of the fund.

• True

• False

An income statement is a financial report that would primarily be used for internal control of cash.

• True

• False

The use of budgets and a budgeting system guarantees the success of a business.

• True

• False