Teacher Trek

USS Biz Trek Extension Activities

Lesson Eight ­ Broke in Space

Vocabulary

Capital

Start-up Cost

Operating Expense

Cost of Goods

Break Even Point

Cash Flow Projection

Journal Assignment

Could a business operate without financial statements? Defend your answer.

Class Discussion

1. Which records should be kept on a daily basis and why?
2. Which records should be kept on a monthly basis and why?
3. Why is a cash flow statement important to a business?
4. You are the bookkeeper at a travel agency. Last month, the following transactions occurred:
5. Sales Credit $23,000

Cash 5,300

Expenses Credit $ 7,000

Cash 4,000

For that month, compute the firm’s net cash flow and net income.

Project

Your new business is ready to open and you need to set up your record-keeping system. Develop the components of your system.

Back to Teacher Trek             Lesson 9

Revised: March 02, 2005.
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