The flashcards below were created by user
Hildestadharry0818
on FreezingBlue Flashcards.
-
Revenue:
All income that business receives over a period of time.
-
Expenses:
Are the costs of operating business.
-
Profit:
If a business makes more than it looses
-
Loss:
If a Business spends more than it makes.
-
Basic financial equations:
- Revenue-expenses=Profit or loss
- Revenue>Expenses=Profit
- Revenue<Expenses=Loss
-
Budget:
Provides detailed plans for the financial needs of individuals, business, or families
-
Start-up Budget
Plans income and expenses for the beginning of a new business
-
Operating Budget
Describes the financial plan for ongoing operations of the business of specific needs
-
Cash Budget
Is an estimate of the actual money recived and paid out for a specific period.
-
Financial records
Are used to record and analyze the financial performance of a business.
-
Assets
What a company owns
-
Liabilities
Are what a company owns
-
Owners equity
is the value of a owners investment in the business
-
Balance sheet
Asset, liabilities, and equity of a owner at a certain date
-
Income statement
Revenue, income, and net income or loss of a business at a certain date
-
Payroll
Is the finiancial record of an employee compensation, deductions and net pay
-
Payroll system
Maintains personal records for each individual employee
-
Payroll records
is the documentation used to process earnings payments and records for each employee
-
Direct deposit
When an employee has their income electronically put into thier bank account
-
Financial performance ratio
comparisons of a companies financial elements
-
Descrpanies
are differences between actual and budgeted performance
-
Net income ratio
Shows how much income is being produced by each dollar sold.
-
Current ratio
Current assests compared to the current liablities
-
Debt to equity ratio
The companys liablites divided by the owners equaty
-
Return on equity ratio
The net profit of the business compared to the amount of owners equity.
|
|