Intro to Business-Chapter 12- Financial Management – Flashcards
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Revenue
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All income that a business receives over a period of time.
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Expenses
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The costs of operating a business.
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Budget
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Provides detailed plans for the financial needs of individuals, families, and businesses.
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Start-up Budget
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Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
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Operating Budget
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Describes the financial plan for ongoing operations of the business for a specific period.
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Cash Budget
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An estimate of the actual money received and paid out for a specific period.
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Financial Records
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Used to record and analyze the financial performance of a business.
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Assets
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What a company owns.
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Liabilities
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What a company owes.
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Owner's Equity
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The value of the owner's investments in the business.
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Balance Sheet
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The assets, liabilities, and owner's equity for a specific date are listed.
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Income Statement
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Report the revenue, expenses, and net income or loss from operations for a specific period.
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Payroll
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The financial record of employee compensation, deductions, and net pay.
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Payroll Record
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The form used to track each employee's pay history.
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Direct Deposit
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The employer transfers net pay electronically into the emplyee's bank account.
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Financial Performance Ratios
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Comparisons of a company's financial elements that indicate how well the business is performing.
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Discrepancies
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Differences between actual and budgeted performance.
