Chapter 12 Financial Management

All income that a business receives over a period of time.

The cost of operating a business

A detailed plan for the financial needs of indivuiduals, families, and businesses

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

A report that covers the revenue and expenses of a business for a specific period.

A financial record of employee compensation, deductions, and net pay

The documentations used to process earnings payments and record each employee's pay history

when 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

The differences between actual and budgeted performance

Identifying all purchases and sales made using credit.

Identifies the companies from which credit purchases were made and the amounts purchased, paid, and owed

Identifies customers that made purchases using credit and the status of each account

List all cash received and spent by the business

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

Shows all taxes collected, owed, and paid

A report that sums up the financial performance of a business

When revenue is higher than expenses