Business and Financial Concepts Quiz

True or False: All Shareholders are Stakeholders

• True

• False

What is the act of creating a business while building and scaling it to generate a profit?

• Payroll

• Revenue

• Net income

• Entrepreneurship

What are the expenses incurred during the process of creating a new business?

• Net profit

• Start-up costs

• Operating costs

• Operating income

True or False: A business’s operating costs and start-up costs are usually the exact same amount.

• True

• False

Multiplying the selling price of a product by the number of products sold will calculate your business’s what?

• Payroll

• Revenue

• Gross profit

• Entrepreneurship

What is the best description of the purpose of financial statements

• To provide media with required information about the company

• To provide confidential financial information to upper management of the company

• To help potential shareholders decide if they should invest in the company

• To provide all stakeholders information about the financial position of the company

In order for a balance sheet to balance, the sum of liabilities and equity must equal what?

• Assets

• Net income

• Direct expenses

• Sum of interests and taxes

The net income/loss is determined by subtracting operating expenses from revenue.

• True

• False

The Cash Flow Statement shows gross profit, net income, and net sales.

• True

• False

Total Liabilities of a business can be found in which of the following financial statements?

• Balance Sheet

• Profit and Loss Statement

• Income Statement

• Cash Flow Statement