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revenue
all income that a business receives over a period of time
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expenses
the costs of operating a business
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budget
detailed financial plan
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start-up budget
plans income and expenses for a new business
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operating budget
financial plan for ongoing operations of a business for a specific period
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cash budget
estimate of the actual money received and paid out for a specific period
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financial records
record and analyze the financial; performance of a business
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assets
what a company owns
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liabilities
what a company owes
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owner's equity
value of the owner's investment in the business
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balance sheet
assets, liabilities, and owner's equity for a specific date
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income statement
revenue, expenses and net income or loss from operations for a specific period (usually 6 months or a year)
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payroll
financial record of employee compensation, deduction, and net pay
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payroll records
the documentation used to process earnings payments and record each employee's pay history
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direct deposit
the employee transfers net pay electronically into the employee's bank account
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financial performance ratios
comparisons of a company's financial elements that indicate how well the business is performing
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discrepensies
differences between actual and budgeted performance
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business budget
- main purposes:
- 1. anticipate sources and amounts of income for a business
- 2.predict types/amounts of expenses
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revenue
all income received by the business
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payroll taxes
social security, medicare, income tax, unemployment tax
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return to equity ratio
net profit compared to owner's equity
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current ratio
current assets compared to current liabilities
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debt to equity
company's liabilities compared to the owner's equity
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net income
when revenue is greater than exspenses
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net loss
when expenses are greater than income
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long-term assets (fixed assets)
assets with a life span of more than a year
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current assets
cash and items that can be readily converted into cash like inventory and accounts recievable
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