Module 5 Quiz Flashcards
Rent is an example of
fixed expense
The ability to collect account may determine the difference between success and failure for a small business
true
Overhead is referred to as a point at which total revenue equals total cost
false
break-even point
Rent, salaries and insurance expenses are actually identified as fixed expenses
true
Supervisory salaries are an exdample of variable expenses
false
Income received but not yet earned is a
deferred income
Which of these does not appear on a balance sheet?
proprietorship
Which of these does not qualify as a current asset?
Land
The things of value owned by a business
Assets
Supplies and utility expenses are identified as variable costs
true
The difference between total sales and sales returns and allowances is
Net sales
Liabilities are all the a funeral director
owes
The accounts receiveable turnover helps to tell a business how well their accounts receivables are coming in
true
Another term for a profit and loss statement is
income statement
Advertising expense would be reflected on the
income statement
A point in business operation whereby total sales revenue equals total costs
Break-even point
A building and or land are examples of intangible fixed assets
false
tangible fixed assets
A study of the balance sheet of a business enterprise will indicate whether or not the sales volume is on the upgrade or downgrade
false
Which of the following is an intangible asset?
name of the business and goodwill
The difference between net sales and cost of goods sold
Gross margin
The difference between current assets and current liabilities
working capital
The amount of revenue from the dale of funeral services would be shown on the
income statement
Fixed capital is another name for circulating capital
false
working capital
Long-term capital invested in the business
fixed capital
Property of relatively permanent nature used in the operation of a business and not intended for resale is called
Fixed asset
The difference between cost of goods sold and their selling price is
gross profit
The current asset items consisting of cash, inventories, and accounts receivables is known as
circulating capital
Debts that are not due and payable within a year
Fixed liabilities
Supplies and taxes are examples of the fixed expenses a business may have
false?
not sure because taxes could be fixed or variable, but usually supplies are considered variable
