Card Set Information
Financial Management Accounting
Chapter 12 Financial Management flashcards.
Used to record and analyze the financial performance of a business.
Identify the buildings and equipment owned by the business, their original and current value, and the amount owed if money was borrowed to purchase the assets.
The costs of operating a business.
All income that a business receives over a period of time.
Describes the financial plan for ongoing operations of a business for a specific period.
The value of the owner's investment in the business.
An estimate of the actual money received and paid our for a specific period.
1. Anticipate sources and amounts of income for a business
2. Predict the types and amounts of expenses for a specific business activity or the entire business
What a company owes.
An earnings report that is attached to the paycheck.
The financial record of employee compensation deductions, and net pay.
Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
Reports that sum up the financial performance of a business.
To report the revenue, expenses, and net income or loss for operations for a specific period, a business prepares this.
The employer transfers net pay electronically into the employee's bank account.
The documentation used to process earnings payments and record each employee's pay history.
Differences between actual and budgeted performance.
Financial Performance Ratios
Comparisons of a company's financial elements that indicate how well the business is performing.
Provides detailed plans for the financial needs of individuals, families, and businesses.
The assets, liabilities, and owner's equity for a specific date are listed on this.
When businesses are responsible for making required federal and state payments for each employee. These taxes consist of income taxes, Social Security, Medicare, and unemployment taxes.
Maintains information on each employee to be able to calculate the company's payroll and to make the necessary payments to each employee.
What a company owns.
Net Income Ratio
Shows how much profit is being made by each dollar of sales for the period being analyzed.
Current assets compared to the current liabilities.