What is Revenue?
All income that a business receives over a period of time.
What are Expenses?
The costs of operating a business.
What is a budget?
It provides detailed plans for the financial needs of individuals, families and businesses.
Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
What is a Operating Budget?
Describes the financial plan for ongoing operations of the business for a specific period.
What is a cash budget?
An estimate of the actual money received and paid out for a specific period.
What are financial records?
Used to record and analyze the financial performance of a business.
What are Assets?
What a company owns.
What are Liabilities?
What a company owes.
What is Owners Equity?
The value of the Owners investment in the business.
What is a Balance Sheet?
Is often prepare every six months or once a year.
What is an Income Statement?
To report the revenue, expenses, and net income or loss from operations for a specific period.
What is a payroll?
The financial record of employee compensation, deductions and net pay.
What are Payroll records?
The documentation used to process earnings payments and record each employee's pay history.
What is Direct Deposit?
The employer transfers net pay electronically into the employee's bank account.
What are Financial Performance ratios?
Comparisons of a company's financial elements that indicate how well the business is performing.
What are Discrepancies?
Differences between actual and budgeted performance.
Chapter 12 Financial Management