Assessment 1,2,3,5

1. True or False. Financial planning is needed by small businesses only until they begin to make 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 received and paid out for a specific period.
True

5. Use the basic financial equation to determine the profit or loss for each of the following:
a. revenue $85,695; expenses $72,624
$85,695-$72,624 = $13,071
b. revenue $1,824,300; expenses $2, 183,680
$1,824,300-$2, 183,680 =  -$359,380
c. revenue $729,655; expenses $499,220
$729,655 - $499,220 = $230,435