Ch. 36

personal financial statement

A summary of your current financial condition.

interst

If you borrow money to start a business, you wil also have to pay_____

asset

anything of monetary value that you own

gross sales

if your company sells only on a cash basis, then your ______________ will be the total of your cash sales.

net profit(or loss)

The amount of money left over after federal, state, and local taxes are subtracted represents a business's ________

net pay

______ is what an employee receives after deductions for taxes, insurance, and voluntary deductions.

net income from operations

___________ is found by subtracting total expenses from gross profit.

operation expenses

________________ are divided into variable and fixed expenses

liability

a debt that you owe

cash flow statement

a monthly plan that shows when you anticipate cash coming into the business and when you expect to pay out cash.

start up costs

a projection of how much money you will need for your new business's first year of operation.

variable expenses

change every month based upon the needs of the business

fixed expenses

costs which stay the same for a certain period of time

gross pay

the amount earned by an employee is that person's ____________

Net Income

the amount left after operating expenses are subtracted from gross profit

principal

the amount that you borrow.

net worth

the difference between the assets of a business and its liabilities.

cost of goods sold

the total amount spent to produce or buy the merchandise to be sold is called....

gross sales

the total of all sales for any period of time.

Income statement

this financial statement is often called aa profit and loss statement.