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Revenue
All money generated within a period of time.
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Expenses
Costs as a result of operating a business.
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Budget
A detailed financial plan for individuals, families, or businesses.
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Business budget
Budget that predicts total income and total expenses incurred for a period of time.
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Start-up Budget
Budget that predicts total income and total expenses from the beginning of the business to when it is profitable.
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Operating Budget
Describes financial plan for ongoing business operations for a specific time period.
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Cash Budget
An estimation of cash going into a business vs. cash going out.
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Financial Records
Documents prepared to asses the performance of a business.
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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 owners investment in a business.
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Balance Sheet
Assets, liabilities, and owner's equity on a specific date at a specific time.
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Income Statement
A document prepared to show actual revenue and expenses of a specific period.
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Payroll
The 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
Employer transfers earnings directly to employee.
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Financial Performance Ratios
Comparisons of company's financial elements used to judge company performance.
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Discrepancies
Differences between actual and budgeted performance.
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Current Ratios
Current assets divided by current liabilities.
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Debt to Equity Ratio
Liabilities divided by owner's equity.
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Return on Equity Ratio
Net profit divided by total investment capital in business.
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Net Income Ratio
Total sales compared to net income for a period.
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FUTA
Federal unemployment tax
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FICA
Social security and medicare taxes. Payed by both individual and business.
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Income Taxes
Federal government and state deductions from employee or business.
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