12.1 Assessment 1 2 3 5

1. Financial planning is needed by small businesses only until they begin to make a profit. False
2. The basic financial equation is D) revenue - expenses = profit or loss
3. A cash budget is an estimate of the actual money received and paid out for a specific period. True

5.  a) 85,695 - 72,624  = 13,071
b) 1,824,300 - 2,183,680 = -359,380
c) 729,655 - 499,220 = 230,435