Title: (Optional) Create a basic income statement and a basic balance sheet.
Course: Make It Your Business (12151-6) > Section: Operating and Evaluating a Business

Creation of a basic income statement should include

- recording revenue
- determining cost of sales
- recording expenses
- calculating net income or net loss.

Creation of a basic balance sheet should include

- assets, including accounts receivable
- liabilities, including accounts payable
- owners’ equity.

Process/Skill Questions:

- Why are accurate financial records important?
- What are the potential consequences of not tracking expenses?
- What are the advantages and disadvantages of using software to track business records? What software packages are popular with businesses today?
- How often should a business complete an income statement? A balance sheet?
- What is the function of an income statement?
- What are possible consequences of a business neglecting to generate an income statement?
- What is the difference between an asset and a liability?
- How should a company track business assets?
- What valuable information can profit and loss statements provide?