Chapter 12 Financial Management

  1. What is Revenue?
    All income that a business receives over a period of time.
  2. What is Expenses?
    Expenses are the costs of operating a business
  3. What is a Budget?
    Detailed plans for the financial needs of individuals, families, and businesses
  4. What is a Start-up Budget?
    It's a plan that incorporates income and expenses from the beginning of a new business or an expansion until it begins to create a profit
  5. What is a Operating Budget?
    The financial plan for ongoing operations of the business for a specific period.
  6. What is a Cash Budget?
    An estimate of the actual money received and paid out for a specific period
  7. What is a financial record?
    It is used to record and analyze the financial performance of a business
  8. What are the different types of records?
    Asset Records, Depreciation records, inventory records, records of accounts, cash records, payroll records, and tax records
  9. What are assets?
    What a company owns
  10. What are liabilities?
    What a company owes
  11. What is owner's equity?
    The value of the owner's investment in the business
  12. What is a balance sheet?
    the assets, liabilities, and owner's equity for a specific date
  13. What is an income statement?
    A report of the revenue, expenses, and net income or loss from operations for a specific period
  14. What is a payroll?
    The financial record of employee compensation, deductions, and net pay
  15. What are payroll records?
    Documentation used to process earnings payments and record each employee's pay history
  16. What is a direct deposit?
    The transfer of net pay electronically into an individual's bank account
  17. What is a financial performance ratio?
    They are comparisons of a company's financial elements that indicate how well the business is performing
  18. What are discrepancies?
    Differences between actual and budgeted performance
  19. If the revenue is greater than expenses then the business will have a          ,  If expenses exceed revenue, the business will have a         
    Profit, Loss
  20. What are the steps of the budgeting process?
    Preparing a list of income and expenses, Gather info from business records for each type,Create a budget by calculating each type of income, expense, and the amount of net income or loss, explain the budget to others.
  21. What reports sum up the financial performance of a business?
    Financial statements, balance sheet, sales, expenses, and profit
  22. What is the advice of deposit
    A reciept
  23. Describe a cash record?
    All cash received and spent on a business
  24. What are payroll records?
    All employee information of the company, their compensations, and benefits
  25. What is depreciation records?
    It Ids the amount assets have decreases in value due to their age and use
Card Set
Chapter 12 Financial Management
Chapter 12 Financial Management Flash cards used to help other individuals in order for them to study and articulate new information or to memorize the words needed to study from in their chapter