Financial Management

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Financial Management
2013-10-01 11:31:49
accounting business

Chapter 12 Flashcards: Principles of Business Administration
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  1. Revenue
    All income that a business receiver over a period of time
  2. Expenses
    costs of operating a business
  3. Budget
    provides detailed plans for the financial needs of individuals, families, and business
  4. start-up budget
    plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable
  5. operating budget
    the financial plan for ongoing operations of the business for a specific period
  6. cash budget
    an estimate of the actual money received and paid out for a specific period
  7. Financial records
    are used to record and analyze the financial performance of a business
  8. Balance Sheet
    the assets, liabilities, and owner's equity for a specific date
  9. assets
    what a company owns
  10. Liabilities
    what a company owes
  11. Owner's Equity
    the value of the owners investment in the business
  12. Income Statement
    to report the revenue, expenses, and net income or loss from operations for a specific period
  13. Payroll
    the financial record of employee compensation, deductions, and net pay
  14. Payroll Records
    the documentation used to process earnings payments and record each employee's pay history.
  15. Direct Deposit
    the employee transfers net pay electronically into the employee's bank account
  16. Financial performance ratios
    comparisons of a company's financial elements that indicate how well the business is performing
  17. Discrepancies
    differences between actual and budgeted performance
  18. 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
  19. Net Income Ratio
    the total sales compared to the net income for a period such as 6 months or a year
  20. Current Ratio
    current assets compared to the current liabilities
  21. Debt to Equity Ratio
    the company's liabilities divided by the owner's equity
  22. Return on Equity Ratio
    the net profit of the business compared to the amount of owner's equity
  23. Earnings Report
    provides information for the current pay period as well as the cumulative amounts for the year
  24. Net Income
    when revenue is greater than expenses
  25. Expenses
    all of the costs of operating the business during the period