1) T F The dashboard of the school bus is like an accounting system, it provides the driver (manager) with information

2) T F Things which are owned by the business and may be used to earn income are called investments.

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F The ultimate objective if a corporation is to increase shareholder equity.

F The Income Statement shows net income for a company for an entire year.

F Revenue minus expenses equals owners equity

F The balance sheet shows the financial position of a company on a specific date.

F The cost of goods sold at a coffee shop would include paper cups, sugar, creamer, and

coffee.

8) T F The ultimate objective if a corporation is to increase shareholder equity.

9) T F Accounting helps business owners make decisions like the dashboard helps you drive.

10) T F One way an investor benefits from the stock market is when the value of her shares

increases.

11) T F When a customer buys something from a business or when a business pays for materials, or

collects money from a customer it is called a transaction.

12) T F Most decisions which people make in life are financial decisions.

13) T F Accounting requires in depth knowledge of math, complicated calculations and an

expensive calculator.

14) T F If you have $55000 in liabilities and $66000 in Assets, your Owners Equity is $11000.

15) T F Depreciation is an accounting method which converts tangible assets, like machinery, and

vehicles, into liabilities.

16) T F The balance sheet shows Revenues, Liabilities, and net income over period of a year.

17) T F If you have $92000 in Revenue and $30000 in office expenses, and $24000 in other

expenses then your net income for the period is $38000

18) T F When you invest your own money into a business it is referred to as revenue.

19) T F When the owner of a small business takes money out of the business it is referred to as a

W/D withdrawal

20) T F Target, Home Depot, and Wegmans are all considered merchandising businesses.