Chapter 12 Management

  1. Revenue
    all income a business recieves over a period of time
  2. Expenses
    Cost of operating a business
  3. Budget
    Provides a detailed plans for the financial needs of individuals, families and businesses.
  4. Start up budget
    Plans income and exoenses from the beginning of a new business or a major business expansion until it becomes profitable.
  5. Operating Budget
    Describes the financial plan for a specific period
  6. Cash budget
    Estimate of the actual money recieved and paid out for a specific period of time
  7. Financial Records
    Used to record and analyze financial performance of a business.
  8. Assets
    What a company owns
  9. Liabilities
    what a company owes
  10. Owners Equity
    Value of owners investment in the business
  11. Balance Sheet
    lists assets, liabilities, and Owners equity
  12. Income Statement
    Reports revenue, expenses, and net income or loss from operations for a specific period
  13. Payroll
    Financial record of employee compensation, deductions, and net pay
  14. Payroll Records
    documentation used to process earnings payments and record each employee's pay history
  15. Direct Deposit
    employer transfers net pay electronically into the employee's bank account.
  16. Financial Performance Ratios
    Comparisons of a company's financial elements that indicate how well the business is doing.
  17. discrepencies
    Differences between actual budgeted performance.
  18. Current Assets
    Include cash and those items readily able to be converted to cash
  19. Long term assets
    assets with lifespan more than a year
  20. Current Liabilites
    Liabilities paid within a year
  21. Net Income
    Revenue greater than expenses
  22. Net Loss
    Occurs when expenses are greater than income
  23. Payroll System
    Maintains information on each employee to be able to calculate company's payroll
  24. Income taxes
    Fed. Taxes on employee's wages
  25. Unemployment Taxes
    tax to unemployment insurance system
Card Set
Chapter 12 Management
Chapter 12 Financial Management