Chapter 12 Financial Management

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Chapter 12 Financial Management
2013-10-01 10:52:50
Accounting Financial Management

Chapter 12 Financial Management Flash Cards
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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. Profit
    When revenue is greater than expenses.
  4. Budget
    Provides detailed plans for the financial needs of individuals, families, and businesses.
  5. Start-up Budget
    Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
  6. Operating Budget
    Describes the financial plan for ongoing operations of the business for a specific period.
  7. Cash Budget
    An estimate of the actual money received and paid out for a specific period.
  8. Financial Records
    used to record and analyze the financial performance of a business.
  9. Assets
    What a company owns.
  10. Liabilities
    What a company owes.
  11. Owner's equity
    The value of the owner's investment in the business.
  12. Balance sheet
    The assets, liabilities, and owner's equity for a specific date are listed on the ___________.
  13. Income Statement
    To report the revenue, expenses, and net income or loss from operations for a specific period.
  14. Payroll
    The financial record of employee compensation, deductions, and net pay.
  15. Payroll Records
    The documentation used to process earnings payments and record each employee's pay history.
  16. Direct Deposit
    When the employer transfers net pay electronically into the employee's bank account.
  17. Financial Performance Ratios
    Comparisons of a company's financial elements that indicate how well the business is performing.
  18. Current Ratio
    Current assets compared to the current liabilities.
  19. Discrepancies
    Differences between actual and budgeted performance.
  20. Net Income Ratio
    The total sales compared to the net income for for a period such as six months or a year.
  21. Earnings Report
    Provides information for the current pay period as well as the cumulative amounts for the year.
  22. 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.
  23. Long-term Assets
    Assets with a life span of more than a year.
  24. Current Liabilities
    Liabilities that will be paid within a year.
  25. Cash Records
    List of all cash received and spent by the business.