Chapter 12

All income that a business receives over time

The costs of operating a business

Provides detailed plans for the financial needs of individuals, families, and business.

Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.

Describes the financial plan for ongoing operations of the business for a specific period.

an estimate of the actual money received and paid out for a specific period.

Used to record and analyze the financial performance of a business.

what a company owns

What a company owes

the value of the owner's investment in the business

The assets,liabilities, and owner's equity for a specific date

To report the revenue, expenses, and net income or loss from operations for a specific period.

the financial record of employee compensation, deductions, and net pay.

the documentation used to process earnings payments and record each employee's pay history.

The employer transfers net pay electronically into the employee's bank account

Comparisons of a company's financial elements that indicate how well the business is performing.

differences between actual and budgeted performance.

list all cash received and spent by the business

Contain information on all employees of the company, their compensation, and benefits.

identify all purchases and sales made using credit.

Reports that sum up the financial performance of a business

the value of the business after liabilities are subtracted from assets

When revenue is greater than expenses

When expenses are greater than income

maintains information on each employee to be able to calculate the company's payroll and to make necessary payments to each employee.