Chapter 12 Financial Management

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Chapter 12 Financial Management
2013-10-01 10:48:29
accounting financial management

These cards with help introduce you to Chapter 12 key terms.
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  1. Revenue
    all income that a business receives over a period of time
  2. Expenses
    The costs of operating a business
  3. Budget
    Provides detailed plans for the financial needs of individuals, families, and businesses
  4. Start-Up Budget
    plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable
  5. Operating Budget
    describes the financial plan for ongoing operations of the business for a specific period
  6. Cash Budget
    An estimate of the actual money received and paid out fora specific period
  7. Financial Records
    used to record and analyze the financial performance of a business
  8. Assets
    what a company owns
  9. Liabilities
    what a company owes
  10. Owner's Equity
    the value of the owner's investment in a business
  11. Balance Sheet
    assets, liabilities, and owners equity for a specific date are listed for 6 months
  12. Income Statement
    report of 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
    the documentation used to process earnings payments and records each employee's pay history.
  15. Direct Deposit
    employer transfers net pay electronically into the employee's bank account
  16. Financial Performance Ratio
    comparisons of a company's financial elements that indicate how well the business is performing
  17. Discrepancies
    differences between actual and budgeted performance
  18. Cash Records
    list all cash received and spent by a business
  19. Payroll System
    maintains information on each employee to be able to calculate the company's payroll and to make the necessary payments to each employee
  20. Profit
    when revenue is greater than expenses
  21. Loss
    expenses are greater than revenue
  22. Asset Records
    identify the buildings and equipment owned by the business
  23. Depreciation Records
    identify the amount assets have decreased in value due to their age and use
  24. Inventory Records
    identify the type and quantity of resources and products on hand along with the current value of each.
  25. Earnings Report
    provides information for the current pay period as well as the cumulative amounts for the year. Sometimes referred to as a "pay stub"