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All income that a business receives over a period of time.
revenue
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The costs of operating a business.
Expenses
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detailed plans for the financial needs of individuals, families, and businesses.
budget
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plans income and expenses from the beginning of a new business or major business expansion until it becomes profitable.
start-up budget
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the financial plan for ongoing operations of the business for a specific period.
operating budget
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an estimate of the actual money received and paid out for a specific period.
cash budget
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record and analyze the financial performance of a business.
financial records
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what a company owns
assets
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what a company owes
liabilites
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the value of the owners investment in the business
owners equity
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the assets, liabilites, and owners equity for the specific date are listed on this sheet.
balance sheet
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to report the revenue, expenses, and net income or loss from operations for a specific period, a business prepares this.
income statement
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the financial record of employee compensation deductions, and net pay.
payroll
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the documentation used to process earnings payments and record each employees pay history.
payroll records
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when the employer transfers net pay electronically into the employees bank account.
direct deposit
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comparisons of a companys financial elements that indicate how well the business is performing
financial performance ratios
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differences between actual and budgeted performance
discrepancies
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current assets compared to the current liabilities is.
current ratio
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the company's liabilities divided by the owners equity
debt to equity ratio
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reports the sum up the financial performance of the business
financial statements
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the three key financial elements for a business are the amount of
sales, expenses and profits
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when expenses exceed revenue, the business will suffer this
loss
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all taxes collected owed and paid
tax records
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maintains information on each employee to be able to calculate the companys payroll and to make the necessary payments to ecah employee
payroll system
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identify the type and quantity of resources and products on hand along with the current value of each
inventory records
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