chapter 12 financial management

  1. Revenue
    all the income a business receives over a period of time
  2. expenses
    cost of running a business
  3. Budget
    provides detailed plans for the financial needs of individuals, families, and businesses
  4. start-up budget
    plans incomes and expenses from the beginning of a new business or a major business expansion until it becomes profitable
  5. operating budget
    financial plan for on going operations of the business for a specific time period
  6. cash budget
    estimate of the actual money received and paid out for specific period
  7. financial records
    used to record and analyze the financial performance of a business
  8. assets
    what companies own
  9. liabilities
    what a company owes
  10. owners equity
    value of the owner's investment in the business
  11. balance sheet
    where assets, liabilities, and owners equity for a specific date are listed
  12. income statement
    to report the the revenue, expenses, and the net income or loss from the operations for a specific time period
  13. payroll
    financial record of employee compensation, deductions, and net pay
  14. payroll records
    documentation used to process earning payments and record each employees pay history
  15. direct deposit
    employer transfers net pay electronically into the employess bank account
  16. financial ratios
    comparisons of a companies financial elements that indicate how well the business is performing
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chapter 12 financial management
chapter 12 financial management, tools for accounting