Ch. 12: Financial Management

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Ch. 12: Financial Management
2013-10-01 10:50:25
accounting financial management

Ch. 12 Financial Management vocabulary-
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  1. Revenue
    All money generated within a period of time.
  2. Expenses
    Costs as a result of operating a business.
  3. Budget
    A detailed financial plan for individuals, families, or businesses.
  4. Business budget
    Budget that predicts total income and total expenses incurred for a period of time.
  5. Start-up Budget
    Budget that predicts total income and total expenses from the beginning of the business to when it is profitable.
  6. Operating Budget
    Describes financial plan for ongoing business operations for a specific time period.
  7. Cash Budget
    An estimation of cash going into a business vs. cash going out.
  8. Financial Records
    Documents prepared to asses the performance of a business.
  9. Assets
    What a company owns.
  10. Liabilities
    What a company owes.
  11. Owner's Equity
    The value of the owners investment in a business.
  12. Balance Sheet
    Assets, liabilities, and owner's equity on a specific date at a specific time.
  13. Income Statement
    A document prepared to show actual revenue and expenses of 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
    Employer transfers earnings directly to employee.
  17. Financial Performance Ratios
    Comparisons of company's financial elements used to judge company performance.
  18. Discrepancies
    Differences between actual and budgeted performance.
  19. Current Ratios
    Current assets divided by current liabilities.
  20. Debt to Equity Ratio
    Liabilities divided by owner's equity.
  21. Return on Equity Ratio
    Net profit divided by total investment capital in business.
  22. Net Income Ratio
    Total sales compared to net income for a period.
  23. FUTA
    Federal unemployment tax
  24. FICA
    Social security and medicare taxes. Payed by both individual and business.
  25. Income Taxes
    Federal government and state deductions from employee or business.