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  • return on equity ratio is calculated dividing net profit over owner's equity--it shows the rate of return owners are getting on the money they invested--it should be compared to the return they could receive if they used their money in other ways (such as savings, investing in other companies, or purchasing stocks and bonds)
  • hello how is the return on equity ratio calculated? what doesit show and to what should it be compared?
  • A balance sheet lists current and long-term assets (things of value a business owns) on the left side--ON THE OTHER HAND, current and long-term liabilties (amounts a businesses owes) and owner's equity (the value of the owner's stake in the business) are shown on the right side
  • Name and briefly describe each element that is recorded on a balance sheet. Which elements are recorded on the left side? The right side?
  • the two main purposes of a budget are 1) anticipate sources and amounts of income for a business AND 2) predict the types and amounts of expenses for a specific business activity or the entire business
  • What are the two main purposes of a business budget?
  • A payroll record is documentation used to process earnings payments and record each employee's pay history--the information included on a payroll record entails personal information for each employee, salary and wage rate, vacation/sick days earned, tax filing status (single, married, etc.) used to calculate income tax to be withheld, health insurance payments, retirement plan contributions,the amount of gross pay, withholding/deductions, net pay for each period and a year-to-date balance for each item
  • What is a payroll record? What information is included on a payroll record?
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