Income statement
This is the value of all sales of goods and services within a period of time
What is revenue?
A resource that you own or control that can generate future economic value.
What is an asset?
This is the organization that regulates the tax system in Canada.
Who is the Canada Revenue Agency (CRA)?
This is the total cost per unit of production.
What is cost of production?
This is the part of the business plan that is created last and then is added to the beginning of the plan.
What is the executive summary?
These are the costs of operating or costs incurred in producing a product.
What are expenses?
True or False: A current asset cannot be easily or quickly converted to cash.
False - current (or liquid) assets include cash, short term deposits, inventory, accounts receivable, etc.
True or False: If you are a sole proprietor, your business income is viewed as personal income for income tax purposes.
TRUE!
These are the potential benefits that are missed out on, when choosing one alternative over another, when a choice needs to be made.
What is opportunity cost?
This component of a business plan outlines the structure of the business.
What is the business overview?
This is also known as a profit and loss statement, and it shows revenue and expenses.
What is an income statement?
True or False: Assets may be classified by usage.
True! Operating vs non-operating
True or False: If you are over 18 and you don't have any income, then you don't need to file income tax.
False! Filing income tax, even without income, ensures that you have access to benefits and credits and also ensures that you are not breaking CRA rules.
This is making the best use of the available resources. Can be technical or economical.
What is efficiency?
True or False: The human resources component of a business plan should not contain salary information
This could go either way depending on the intended audience...if the employees are seeing the plan, you may want to leave out the salary info but you should include the salary info for your lenders, accountants, business managers and shareholders.
The amount that machinery, equipment, buildings or other capital assets decline in value due to use or obsolescence.
What is depreciation?
This is the value of all assets minus liabilities.
What is Net Worth?
These are eligible expenses that lower your taxable income before income tax is applied.
What are tax deductions?
True or False: The Saskatchewan Ministry of Agriculture produces a crop planning guide that may be used to help determine revenue per acre of crops grown in the province based on the soil zone.
True!
What is the first question that you should ask/answer when developing a business plan?
Where are we now?
The ability of an operation to generate cash that’s greater than its expenses.
What is operating income?
This is the asset value that an owner has directly invested in the operation/business.
What is Owner's Equity?
These reduce the amount of taxes owed and some may be deferred to another tax year.
What are tax credits?
When producing something, if all
production factors remain constant, there will eventually be a point of maximum output after which the return of producing one more unit will decline. This is called...
What is the Law of Diminishing Returns?
This is how often a business plan should be reviewed.
At least annually, as markets change, and/or as people develop or change