Financial Documents

Budgeting is crucial to your financial success.

• True

• False

Preparing a budget includes

• Income, Expenses, Saving

• Only listing your expenses

• Only listing your debts

• Only listing your income

The Income Statement lists a businesses:

• Assets and Expenses

• Owner's Equity and Revenue

• Revenue, cost of goods and Expenses

• Expenses and Net Assets

When expenses are greater than income?

• expense

• net loss

• net income

• net gain

A Net Profit occurs if:

• Gross Profit is greater than expenses

• Expenses greater than Gross Profit

• None of the listed choices

What period of time does a balance sheet cover?

One quarter

• One moment in time

• One year

• One tax year

• SHOW ANSWER

A document that shows the earnings and deductions for all employees for the payroll period is

• an employee earnings record

• a payroll register

• a wage and tax statement

• both A and C

Examples of voluntary deductions from pay include

• charitable donations

• local income taxes

• employee contributions to retirement plans

• both A and C

Deductions from payroll that are required by law include

• a. federal income tax

• b. contributions to Social Security and Medicare

• c. charitable contributions

• d. both A and B

What is the purpose of a budget?