12-1 Assessment (1-5) -- Jake Hermance

1. True or False. Financial planning is needed by small businesses only until they begin making a profit.
False
2. The basic financial equation is
d. Revenue - Expenses = Profit or Loss
3. True or False. A cash budget is an estimate of the actual money recieved and paid out for a specific period.
True
5. Math. Use the basic financial equation to determine the profit or loss for each of the following:
a. 85,695 - 72,624 = $13,071 -- Profit.
b. 1,824,300 - 2,183,680 = $-359,380 -- Loss.
c. 729,655 - 499,220 = $230,435 -- Profit.