Financial Management

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  1. Revenue
    All income that a business receives over a period of time.
  2. Expenses
    The cost of operating a business.
  3. Start-Up Budget
    Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
  4. Financial Records
    Used to record and analyze the financial performance of a business.
  5. Balance Sheet
    The assets, liabilities, and owner's equity for a specific date.
  6. Assets
    What a company owns.
  7. Liabilities
    What a company owes.
  8. Owner's Equity
    The value of the owner's investments in the business.
  9. Income Statement
    Report the revenue, expenses, and net income or loss from the operations for a specific period.
  10. Payroll
    Financial record of employee compensation, deductions, and net pay.
  11. Payroll Records
    Documentation used to process earnings and payments and record each employee's pay history.
  12. Direct Deposit
    The employer transfers net pay electronically into the employee's bank account.
  13. Financial Performance Ratios
    Comparisons of a company's financial elements that indicate how well the business is performing.
  14. Discrepancies
    Difference between actual and budgeted performance.
  15. Operating Budget
    Describes the financial plan for ongoing operations of the business for a specific period.
  16. Cash Budget
    An estimate of the actual money recieved and paid out for a specific period.
  17. Return on Equity Ratio
    The net profit of the business compared t the amount of the owner's equity.
  18. Net Income Ratio
    The total sales compared to the net income for a period such as six months or a year.
  19. Current Ratio
    Current assets compared to the current liabilities.
  20. Debt to Equity Ratio
    The company's liabilities divided by the owner's equity.
  21. Asset Records
    Identify the buildings and equipment owned by the business.
  22. Depreciation Records
    Identify the amount assets have decreased in the value due to their age and use.
  23. Inventory Records
    Identify the type and quantity of resources and products on hand along with the current value of each.
  24. Records of Accounts
    identify all purchases and sales made using credit.
  25. Cash Records
    List all cash received and spent by the business.
Card Set:
Financial Management
2013-10-01 15:46:49
Accounting Financial Management

Principles of business Ad.
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