BUSINESS ESSENTIALS CANADIAN EDITION
EBERT TEST BANK EXAM REVIEW
COMPLETE QUESTIONS AND CORRECT
ANSWERS EXPERT VERIFIED GRADED A+
⩥ income statement.
Answer: Shows the revenue, expenses and profit/loss of a business for a
period of time.
⩥ start-up budget.
Answer: A budget that plans income and expenses from the beginning of
a new business or a major business expansion until it becomes
profitable.
⩥ operating budget.
Answer: A budget that describes the financial plan for ongoing
operations of the business for a specific period (typically 1 year).
⩥ net income.
Answer: Another term for profit.
⩥ net loss.
,Answer: Another term for loss.
⩥ accounts receivable.
Answer: Amounts that customers owe the company.
⩥ long term assets.
Answer: Includes assets with a lifespan of more than a year. Some
examples include: land, buildings, equipment.
⩥ current assets.
Answer: Includes cash and anything that can easily be converted to cash.
Some other examples include: inventory, accounts receivable.
⩥ current liabilities.
Answer: Amounts due to be paid in less than one year. Some examples
include: short term loans from a bank, accounts payable.
⩥ accounts payable.
Answer: Payments to other vendors (businesses) that will be paid at a
later date.
⩥ long term liabilities.
, Answer: Amounts due in over one year. Examples include: long term
investments in land, buildings, equipment.
⩥ payroll.
Answer: The financial record of employee compensation, deductions
and net pay.
⩥ pay period.
Answer: How often employees are paid.
⩥ regular earnings.
Answer: Employees are either paid a salary or an hourly rate.
⩥ overtime earnings.
Answer: Only available for hourly employees; 1 ½ times regular pay
rate for hours worked over 40 hours in one week.
⩥ commissions, bonuses, profit sharing.
Answer: Extra money only available to certain employees.
⩥ gross pay.
Answer: The total earnings for an employee during a pay period.
Includes Regular, Overtime and Commission earnings.
EBERT TEST BANK EXAM REVIEW
COMPLETE QUESTIONS AND CORRECT
ANSWERS EXPERT VERIFIED GRADED A+
⩥ income statement.
Answer: Shows the revenue, expenses and profit/loss of a business for a
period of time.
⩥ start-up budget.
Answer: A budget that plans income and expenses from the beginning of
a new business or a major business expansion until it becomes
profitable.
⩥ operating budget.
Answer: A budget that describes the financial plan for ongoing
operations of the business for a specific period (typically 1 year).
⩥ net income.
Answer: Another term for profit.
⩥ net loss.
,Answer: Another term for loss.
⩥ accounts receivable.
Answer: Amounts that customers owe the company.
⩥ long term assets.
Answer: Includes assets with a lifespan of more than a year. Some
examples include: land, buildings, equipment.
⩥ current assets.
Answer: Includes cash and anything that can easily be converted to cash.
Some other examples include: inventory, accounts receivable.
⩥ current liabilities.
Answer: Amounts due to be paid in less than one year. Some examples
include: short term loans from a bank, accounts payable.
⩥ accounts payable.
Answer: Payments to other vendors (businesses) that will be paid at a
later date.
⩥ long term liabilities.
, Answer: Amounts due in over one year. Examples include: long term
investments in land, buildings, equipment.
⩥ payroll.
Answer: The financial record of employee compensation, deductions
and net pay.
⩥ pay period.
Answer: How often employees are paid.
⩥ regular earnings.
Answer: Employees are either paid a salary or an hourly rate.
⩥ overtime earnings.
Answer: Only available for hourly employees; 1 ½ times regular pay
rate for hours worked over 40 hours in one week.
⩥ commissions, bonuses, profit sharing.
Answer: Extra money only available to certain employees.
⩥ gross pay.
Answer: The total earnings for an employee during a pay period.
Includes Regular, Overtime and Commission earnings.
