Card Set Information
Financial Management Accounting
Chapter 12 Financial Management flashcards.
All income that a business receives over a period of time.
The costs of operating a business.
Provides detailed plans for the financial needs of individuals, families, and businesses.
Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
Describes the financial plan for ongoing operations of the business for a specific period.
An estimate of the actual money received and paid out for a specific period.
Used to record and analyze the financial performance of a business.
What a company owns.
What a company owes.
The value of the owner's investment in the business.
Where the assets, liabilities, and owner's equity for a specific date are listed.
Where a business reports the revenue, expenses, and net income or loss from operations for a specific period.
The financial record of employee compensation, deductions, and net pay.
The documentation used to process earnings payments and record each employee's pay history.
What an employer uses to transfer 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.
Differences between actual and budgeted performance.
When revenue is greater than expenses.
When expenses exceed revenue.
Reports that sum up the financial performance of a business.
Maintains information on each employee to be able to calculate the company's payroll and to make the necessary payments to each employee.
Current assets compared to the current liabilities.
Debt to Equity Ratio
A ratio that tells you how much of the business is relying on the money borrowed from others that will have to be paid back rather than money provided by the owners.
Return on Equity Ratio
Shows the rate of return the owners are getting on the money they invested in the company.
Net income ratio
Shows how much profit is being made by each dollar of sales for the period being analyzed.