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Chapter 12 –Financial Management
12-2
Financial Records and Financial Statement - page 298
KEY TERMS
Financial records
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Assets
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Liabilities
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Owner’s equity
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Balance sheet
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Income statement
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CHECKPOINT
How has the process of maintaining financial records been affected by
technology?
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CHECKPOINT
What is the difference between a balance sheet and an income
statement?
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12-2
ASSESSMENT
Highlight the best answer.
1. The value of the buildings and equipment owned by a business
can be determined in the
a. inventory records
b. asset records
c. records of accounts
d. tax records
2. True or False. The two most common and important financial
records for businesses are the income statement and the
balance sheet.
3. Current liabilities are amounts owed that will be paid in less than
a. one month
b. six months
c. one year
d. five years
4. The current value of investments made by the owners of a
business can be found in the
a. income statement
b. balance sheet
c. tax records
d. record of accounts