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Milady Ch 29 - Financial Business Skills Flashcards | StudBud
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Milady Ch 29 - Financial Business Skills
Milady Ch 29 - Financial Business Skills
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Advanced Esthetics (300hr NV)
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Questions
35
Answers
1
What document indicates how much money is regularly moving through a business?
income statement
cash flow statement
break-even analysis
balance sheet
2
What term refers to the chance of incurring some type of harm, damage, or loss?
liabilities
assets
risk
capital
3
What term refers to what it costs to provide the products and services that you sell?
cost of goods sold
insurance
business plan
gross profit
4
What is NOT among the things you should do before deciding to open your own business?
examine industry trends
analyze the competition
make investments based upon future profits
study economic conditions
5
What term refers to the methods used to safeguard your business against loss or damage?
owner’s equity
risk management
liability
venture capital
6
What term refers to the point at which all costs are covered and your business begins to earn a profit?
balance sheet
break-even analysis
income statement
cash flow statement
7
# issued by the Internal Revenue Service (IRS) to a nonresident or resident alien working in the U.S. to process taxes
social security number
employer identification number
individual tax identification number
employment certificate
8
What term refers to a profit and loss statement?
balance sheet
income statement
cash flow statement
break-even analysis
9
What term refers to the total amount of money a business takes in from the sale of products and/or services?
insurance
business plan
cost of goods sold
gross profit
10
What is a social security number (SSN)?
proprietor’s interest in the assets of a company
number used to identify a business that maintains employees
procedure established by the accounting profession
number used to identify an individual taxpayer
11
What is owner’s equity?
proprietor’s interest in the assets of a company
procedure established by the accounting profession
number used to identify a business that maintains employees
number used to identify an individual taxpayer
12
What is a legal document that defines the terms of a loan agreement between two parties?
I.O.U.
work order
receipt
promissory note
13
Who is NOT among the professionals to whom you should turn for assistance when developing a business plan?
potential competitor
small-business consultant
marketing specialist
accountant
14
What must you remember about your legal obligations as a business owner?
you are only beholden to state laws, so federal laws do not apply
you only have legal obligations if your business is profitable
ignorance is no defense in terms of following the law
you are not expected to follow laws with which you are unfamiliar
15
What document provides a financial overview of a business at a given point in time in terms of assets and liabilities?
break-even analysis
income statement
cash flow statement
balance sheet
16
What does self-employment tax allow those who work for themselves to receive?
the right to incorporate
benefits
government work contracts
free government healthcare
17
What term refers to the amount of money invested in a business?
liabilities
risk
assets
capital
18
What is a policy that provides protection against business casualties?
cost of goods sold
insurance
business plan
gross profit
19
Business plan section that defines the accounting method used & the the person responsible for managing the business
financial plan
executive summary
operations plan
mission statement
20
What tax funds a joint program between the state and federal governments that covers employees who lose their jobs?
Alternative Minimum Tax
federal unemployment tax
Social Security tax
federal income tax
21
What is NOT one of the three primary sources for raising the money you need to invest in your own business?
government grants
loans
your own savings
investors
22
Who controls the means and methods by which an individual contractor accomplishes his or her work?
stockholders
the contractor’s clients
the contractor
venture capitalists
23
What term refers to the amount of debt or money your business owes to creditors?
capital
liabilities
risk
assets
24
What is the real income of a business after all of the expenses associated with operation are subtracted?
capital
net profit
assets
gross income
25
How often should you revise your business plan to stay abreast of industry trends and your business growth & evolution?
every month
every week
every year
every six months
26
What is an independent federal agency set up to help small-business owners?
Small Business Training Network (SBTN)
Federal Trade Commission (FTC)
Internal Revenue Service (IRS)
Small Business Administration (SBA)
27
What are generally accepted accounting practices (GAAP)?
numbers used to identify individual taxpayers
numbers used to identify businesses that maintain employees
numbers reflecting the proprietor’s interest in the assets of a company
procedures established by the accounting profession
28
What maps out a strategy for understanding key elements in developing business?
insurance
business plan
cost of goods sold
gross profit
29
Refers to an individual or group of individuals, who invests in businesses with the goal of gaining return on investment
executive officers
stockholders
sole proprietors
venture capitalists
30
What term refers to anything your business owns?
liabilities
capital
risk
assets
31
What is a tax imposed on those who sell retail products?
sales tax
Social Security tax
resale tax
income tax
32
What percentage of small businesses fail in the first five years, according to the Small Business Administration (SBA)?
more than 50 percent
under 10 percent
under 25 percent
more than 75 percent
33
What federal tax form is used to verify that your employees are eligible to work in the United States?
I-9
941
1040
W-4
34
What is an employer identification number (EIN)?
number used to identify a business that maintains employees
procedure established by the accounting profession
proprietor’s interest in the assets of a company
number used to identify an individual taxpayer
35
What federal tax form is used to report the amount of taxes withheld from each employee by the employer?
941
W-4
1040
I-9
