Chapter 12

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Chapter 12
2013-10-01 10:49:45
wths flashcards chapter 12

Flashcards for Chapter 12
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  1. Revenue
    All income that a business receives over time
  2. Expenses
    The costs of operating a business
  3. Budget
    Provides detailed plans for the financial needs of individuals, families, and business.
  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 for a 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 the business
  11. Balance Sheet
    The assets,liabilities, and owner's equity for a specific date
  12. Income Statement
    To report the revenue, expenses, and net income or loss from operations for a specific period.
  13. Payroll
    the financial record of employee compensation, deductions, and net pay.
  14. Payroll Records
    the documentation used to process earnings payments and record each employee's pay history.
  15. Direct Deposit
    The 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 the business
  19. Payroll Records
    Contain information on all employees of the company, their compensation, and benefits.
  20. Records of accounts
    identify all purchases and sales made using credit.
  21. Financial Statements
    Reports that sum up the financial performance of a business
  22. Owner's Equity
    the value of the business after liabilities are subtracted from assets
  23. Net Income
    When revenue is greater than expenses
  24. Net Loss
    When expenses are greater than income
  25. Payroll System
    maintains information on each employee to be able to calculate the company's payroll and to make necessary payments to each employee.