Card Set Information
Accounting Financial Management
Principles of business Ad.
All income that a business receives over a period of time.
The cost of operating a business.
Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
Used to record and analyze the financial performance of a business.
The assets, liabilities, and owner's equity for a specific date.
What a company owns.
What a company owes.
The value of the owner's investments in the business.
Report the revenue, expenses, and net income or loss from the operations for a specific period.
Financial record of employee compensation, deductions, and net pay.
Documentation used to process earnings and payments and record each employee's pay history.
The employer transfers net pay electronically into the employee's bank account.
Financial Performance Ratios
Comparisons of a company's financial elements that indicate how well the business is performing.
Difference between actual and budgeted performance.
Describes the financial plan for ongoing operations of the business for a specific period.
An estimate of the actual money recieved and paid out for a specific period.
Return on Equity Ratio
The net profit of the business compared t the amount of the owner's equity.
Net Income Ratio
The total sales compared to the net income for a period such as six months or a year.
Current assets compared to the current liabilities.
Debt to Equity Ratio
The company's liabilities divided by the owner's equity.
Identify the buildings and equipment owned by the business.
Identify the amount assets have decreased in the 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.
Records of Accounts
identify all purchases and sales made using credit.
List all cash received and spent by the business.