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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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Profit
if revenue is greater than expenses
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Loss
if expenses exceed revenue
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Budget
detailed plans for the financial needs of individuals, families, and business
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Business Budget
- anticipates sources and amounts of income for a business
- predicts the types and amounts of expenses for a specific business activity or the entire business
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Start-up Budget
plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable
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Operating Budget
describes the financial plan for ongoing operations of the business fro a specific period
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Cash Budget
an estimate of the actual money received and paid out for a specific period
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Financial Records
used to record and analyze the financial performance of a business
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Asset Records
identify the buildings and equipment owned by the business, their original and current value, and the amount owed if money was borrowed to purchase the assets
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Depreciation Records
identify the amount assets have decreased in value due to their age and use
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Inventory Records
- identify the type and quantity of resources and products on hand along with the current value of each
- accurate records are crucial
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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
the value of the owner's investment in the business
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Balance Sheet
lists the assets, liabilities, and owner's equity for a specific date
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Income Statement
used to report the revenue, expenses, and net income or loss from operations for a specific period
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Payroll
financial record of employee compensation, deductions, 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 employer 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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Discrepancies
differences between actual and budgeted performance
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Records of Accounts
identify all purchases and sales made using credit
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Accounts Payable Record
companies from which credit purchases were made and amounts purchased, paid, and owed
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Accounts Receivable Record
identifies customers that made purchases using credit and the status of each account
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Cash Records
list all cash received and spent by the business
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Payroll Records
contain info on all employees of the company, their compensation, and benefits
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Tax Records
show all taxes collected, owed, and paid
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Advise of deposit
receipt of deposit
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