Chapter 12

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  1. What is Revenue?
    All Incomes that a business receives over a period of time
  2. What is Expenses?
    Are the cost of operating a business.
  3. Whats a budget?
    Provides detailed plans for the Financial needs of individuals, families and businesses.
  4. Start up Budget?
    Plans the 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
    Is an estimate of the actual money received and paid out for a specific period.
  7. Financial records
    are used to record and analyze the financial performance of a business.
  8. Assets
    are what a company owns.
  9. liabilities
    Are what company owes
  10. Owners equlity
    is the value of the owners investment in the business.
  11. Balance sheet?
    The assets, liabilities, and the owners equity for a specific date are listed on it.
  12. Income statement?
    To report the revenue, expense, and net income or loss from operations for a specific period.
  13. Payroll?
    Is the financial record of employee compensation, deductions, and net pay.
  14. Pay records?
    Are the documents used to process earning payment and record each employee's pay history.
  15. Direct Deposit?
    The employer transfers net pay electronically into the employees's bank account
  16. Financial performance ratio?
    Are comparisons of a company's financial elements that indicate how well the business is performing.
  17. Discrepancies?
    are differences between actual and budgeted performance?
  18. What are the two main purposes of a business budget?
    *Anticipate sources and amounts of income for a business

    * Predict they types and amounts of expenses for a specific business activity or the entire business
  19. Cash Records
    List all cash received and spent by the business.
Card Set:
Chapter 12
2013-10-01 14:55:58
Accounting Financial Management

Chapter 12 Accounting Financial Management
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