| A | B |
|---|
| Start-up costs for both small and large businesses | will vary |
| payroll taxes are part of | fixed expenses |
| A new business owner should calculate peronal costs at what time in the business plan | same time as other first year expenses |
| the amount left after gross sales have been adjusted for allowances and returns | net sales |
| employers must pay these on their employee's earnings | social security and medicare |
| monthly plan helps a business owner track when cash is expected to come in and when it would be paid out | cash flow statement |
| Gross Profit - Net Income = | operating expenses |
| Assets - Debts= | net worth |
| document summarizes a loan applicant’s assets and liabilities | personal financial statement |
| Beginning Inventory + Purchases = | Total Goods Available for Sale |
| Total Goods Available for Sale - Ending Inventory= | Cost of Goods Sold |
| include a business’s operating expenses, such as advertising costs | variable expenses |
| lenders examine a borrowers__ history when deciding if they are worthy of a loan or not | Credit |
| net worth is another name for | net equity |
| net worth is calculated on this financial statement | balance sheet |
| a building is an example this type of asset | fixed |
| Sales - Returns and Allowances= | Net Sales |
| Net Sales - Cost of Goods Sold= | Gross Profit |
| Gross Pay - Deductions = | net pay |
| Banks look at the _ of a potential borrower because they can be sold if necessary to pay off a loan | assets |
| determine a business’s ability to meet its current debts | Liquidity |
| total of all sales for any period of time | gross sales |
| the difference between net sales and the cost of goods sold | gross profit |
| the total value of one’s assets minus the total value of one’s debts | personal net worth |
| projections of how much money a new business owner will need for the first year of a business’s operation | start-up expenses |
| the difference between a business’s total sales and customers’ returns or allowances | net sales |
| operating expenses paid throughout the life of a business | continuing costs |
| a business owner’s living expenses and household cash needs | personal costs |
| amount borrowed as a loan, e.g., for starting a business | principal |
| expenses that will not be repeated | one-time costs |
| a debt, money owed to another | liability |
