Chapter 12 Vocabulary - Intro to Business
cash budget
an estimate of the actual money received and paid out for a specific period
balance sheet
assets, liabilities, and owner's equity for a specific date are listed
financial performance ratios
comparisons of a company's financial elements that indicate how well the business is performing
discrepancies
differences between actual and budgeted performance
start-up budget
plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable
budget
provides detailed plans for the financial needs of individuals, families, and businesses
income statement
revenue, expenses, and net income or loss from operations for a specific period
expenses
the costs of operating a business
payroll records
the documentation used to process earnings payments and record each employee's pay history
direct deposit
the employer transfers net pay electronically into the employee's bank account
operating budget
the financial plan for ongoing operations of the business for a specific period
payroll
the financial record of employee compensation, deduction, and net pay
revenue
all income that a business receives over a period of time
owner's equity
the value of the owner's investment in the business
financial records
used to record and analyze the financial performance of a business
liabilities
what a company owes
assets
what a company owns