ESB v2 Domain 4
Study online at https://quizlet.com/_d6xzsy
1. Balance Sheet A document that compares assets to liabilities
plus owner's equity.
2. Income Statement A financial statement that details a business's
revenue and expenses for a given period.
3. Break-Even Point The point where a business's revenue matches
its expenses over a given period.
4. Profit Margin The net profit the company wants to make from
the sale and is usually represented using a per-
centage.
5. Selling Price Formula [(cost) * (desired profit margin)] + (cost)
6. Ben owns a shoe store. He has a new line $21.60
of limited-edition running shoes that he
will be selling in his store soon. The cost
of manufacturing the shoes was $18 per
pair, and he wants to make a 20% profit
on each pair he sells. What is Ben's sell-
ing price?
7. Adam owns a restaurant. A new dish is $8.98
being added to the restaurant's menu.
The cost of making the dish is $6.75,
and he wants to make a 33% profit on
each dish he sells. What is Adam's selling
price?
8. Cory owns a home goods store. He is $12.94
about to add a new line of candles to
his store. The cost of manufacturing
1/7
, ESB v2 Domain 4
Study online at https://quizlet.com/_d6xzsy
the candles is $8.46 per candle, and he
wants to make a 52% profit on each can-
dle. What is Cory's selling price?
9. Equity Formula (assets) - (liabilities)
10. Asset A tangible item a business owns.
11. Liability The amount of money owed to an entity.
12. Mallory owns an auto repair shop. She $12,500
has $12,000 in cash, $8,000 in inventory,
a $4,000 credit card balance, and $3,500
in long-term debt. What is Mallory's eq-
uity?
13. Ashley sells cars. She has $26,000 in $47,500
cash, $34,000 in inventory, a $4,600
credit card balance, and $7,900 in
long-term debt. What is Ashley's equity?
14. Mindy owns a restaurant. She has $16,600
$14,200 in cash, $2,600 in inventory,
$5,000 in equipment, a $3,800 credit
card balance, and $1,400 in long-term
debt. What is Mindy's equity?
15. Net Income Formula (income) - (cost of goods + cost of expenses)
16. Gross Income Formula (income) - (cost of goods)
17. Income Tax Expense Formula (gross profit) * tax rate
18. Break-Even Point Formula (total expenses) / (sale price)
2/7
Study online at https://quizlet.com/_d6xzsy
1. Balance Sheet A document that compares assets to liabilities
plus owner's equity.
2. Income Statement A financial statement that details a business's
revenue and expenses for a given period.
3. Break-Even Point The point where a business's revenue matches
its expenses over a given period.
4. Profit Margin The net profit the company wants to make from
the sale and is usually represented using a per-
centage.
5. Selling Price Formula [(cost) * (desired profit margin)] + (cost)
6. Ben owns a shoe store. He has a new line $21.60
of limited-edition running shoes that he
will be selling in his store soon. The cost
of manufacturing the shoes was $18 per
pair, and he wants to make a 20% profit
on each pair he sells. What is Ben's sell-
ing price?
7. Adam owns a restaurant. A new dish is $8.98
being added to the restaurant's menu.
The cost of making the dish is $6.75,
and he wants to make a 33% profit on
each dish he sells. What is Adam's selling
price?
8. Cory owns a home goods store. He is $12.94
about to add a new line of candles to
his store. The cost of manufacturing
1/7
, ESB v2 Domain 4
Study online at https://quizlet.com/_d6xzsy
the candles is $8.46 per candle, and he
wants to make a 52% profit on each can-
dle. What is Cory's selling price?
9. Equity Formula (assets) - (liabilities)
10. Asset A tangible item a business owns.
11. Liability The amount of money owed to an entity.
12. Mallory owns an auto repair shop. She $12,500
has $12,000 in cash, $8,000 in inventory,
a $4,000 credit card balance, and $3,500
in long-term debt. What is Mallory's eq-
uity?
13. Ashley sells cars. She has $26,000 in $47,500
cash, $34,000 in inventory, a $4,600
credit card balance, and $7,900 in
long-term debt. What is Ashley's equity?
14. Mindy owns a restaurant. She has $16,600
$14,200 in cash, $2,600 in inventory,
$5,000 in equipment, a $3,800 credit
card balance, and $1,400 in long-term
debt. What is Mindy's equity?
15. Net Income Formula (income) - (cost of goods + cost of expenses)
16. Gross Income Formula (income) - (cost of goods)
17. Income Tax Expense Formula (gross profit) * tax rate
18. Break-Even Point Formula (total expenses) / (sale price)
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