Financial Management

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Financial Management
2013-10-01 11:46:33
PBA Financial Management

Chapter 12 stuff... PBA
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  1. Revenue
    All income that a business receives over a period.
  2. Expenses
    are all the costs 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 become profitable.
  4. Operating Budget

    describes the financial plan for ongoing operations of the business for a specific period.
  5. Cash Budget
    is an estimate of the actual money received and paid out for a specific period.
  6. Financial Records
    are used to record and analyze the financial performance of a business.
  7. Asset Records
    identify the buildings and equipment owned by the business, their original and current value, and the amount owned if money was borrowed to purchase the assets.
  8. Depreciation Records
    Identify the amount assets have decreased in value due to their age and use.
  9. Inventory Records
    identify the type and quantity of resources and products on hand along with the current value of each. Accurate records are crucial to determine id adequate resources are available to meet operation and production needs as well as customer demand.
  10. Cash Records
    list all cash received and spent by the business.
  11. Payroll Records
    Contain the information on all employees of the company, their compensation, and benefits.
  12. Tax Records
    show all taxes collected owed, and paid.
  13. Assets
    are what a company owns.
  14.  Liabilities 
    are what a company owes.
  15. Owner's Equity
    is the value of the owner's investment in the business.
  16. Balance Sheet
    The assets, liabilities, and owner's equity for a specific date.
  17. Income Statement
    To report the revenue, expenses, and net income or loss from operation for a specific period.
  18. Payroll
    is the financial record of employee compensation, deductions, and net pay.
  19. 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.
  20. Payroll Records
    are the documentation used to process earnings payments and record each employee's pay history.
  21. Direct Deposit
    the employer transfers net pay electronically into the employee's bank account.
  22. Financial Performance Ratios
    are comparisons of a company's financial elements that indicate how well the business is performing.
  23. Discrepancies
    are differences between actual and budgeted performance.
  24. Long term assets
    are the assets with a life span of more than a year
  25. Current Liabilities
    are those that will be paid within a year.