Management Chapter 12 Business Accounting Financial
chapter 12 financial management, includes accounting.
All income that a business receives over a period of time.
The costs of operating a business.
When revenue is greater than expenses.
When expenses are greater than revenue.
Provides detailed plans for the financial needs of individuals, families, and businesses.
1. Anticipate sources and amounts of income for a business.
2. Predict the types and amounts of expenses for a specific business activity or the entire business.
Small Business Administration (SBA)
Provides many planning tools for new 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.
Identify the buildings and equipment owned by the business, their original and current value, and the amount owed if money was borrowed to purchase the assets.
Identify the amount assets have decreased in value due to their age and use.
Identify the type and quantity of resources and products on hand along with the current value of each. Accurate records are crucial to determine if adequate resources are available to meet operating and production needs as well as customer demand.
Records of Accounts
Identify all purchases and sales made using credit.
Accounts Payable Record
Identifies customers that made purchases using credit and the status of each account.
List all cash received and spent by the business.
Contains information on all employees of the company, their compensation, and benefits.
Show all taxes collected, owed, and paid.
What a company owes
What a company owes.
The value of the owner's investment in the business.
Reports that sum up the financial performance of a business.
The assets, liabilities, and owner's equity for a specific date are listed here.
The report the revenue, expenses, and net income or loss from operations for a specific period.
Assets that can easily be converted into cash
Long-term Assets (Fixed Assets)
Assets with a life span of more than a year.
Liabilities that will be paid within a year.
Debts that will continue for longer than a year.
The financial record of employee compensation, deductions,