Business management chapter 15 vocabulary

Net profit

(1)the amount remaining after subtracting All expenses from revenue except taxes (2) the difference between the selling price and all costs and expenses of the business

Capital(net worth,owner's equity,stock Holders equity )

(1)the money required to start or expand a business (2)a measure of the credit applicants current financial worth or ability to pay based on assets(3)the value of the owner's investment in the business after subtracting liabilities from assets

Book value

(1)the value of a share of stock that is found by dividing the net worth (assets minus liabilities ) of the corporation by the total numbers of shares outstanding (2)the value of an asset after deducting the total amount of depreciation from the assets original value

Operating budget

A budget showing projected sales,costs,expenses,and profits for the on going operations of business

Start-up budget

A budget that projects income and expenses from the beginning of a new business until it is expected to become profitable

Capital budget

A financial plan for replacing fixed assets or acquiring new ones

Cash flow statement

A financial report primarily used for internal cash control

Sales budget

A forecast of the sales revenue a company expects to receive in a month, a quarter, or a year

Financial dashboard

A graphic designed to provide a quick view of financial performance indicators

Record keeping system

A manual or Automated process for collecting,organizing, and maintaining the financial information of a business

Certified public accountant (CPA)

A person who has met the state's education,experience,and examination requirements in accounting

Accounts payable record

A record showing purchases of a business,money owed and payments made by the business

Accounts receivable record

A record showing what each customer purchases,owes and pays

Budget

A written financial plan for business operations developed for a specific period of time

Small business administration (SBA)

An agency of the federal government that provides information,advice, and assistance in obtaining credit and other financial support for small businesses

Cash budget

An estimate of the flow of cash in and out of the business over a specified time period

Audit

An examination of a company's financial records by an expert to verify their accuracy

Asset

Anything of value owned,such as cash and buildings

Accounting equation

Assets=liabilities+capital

Cash dibursements

Cash payments made by a business

Liabilities

Claims against assets or things owed the debts of a business

Fixed assets

Expensive assets of a business that are expected to last and be used for a long time

Depreciation

Gradual loss of an asset's value due to age and wear

Cash receipts

Money taken in by a business

Financial records

Organized summaries of a business's financial information and activities

Financial statements

Reports that summarize financial data over a period of time

Consultant

Someone who gives professional advice or offers professional services

Income statement

Tax in the profits of businesses and the earnings of individuals

Cost of goods sold

The amount a retailer pays a supplier for the merchandise it buys and sells or the amount a manufacturer pays for raw materials and parts to make it's products

Accounts receivable

The amount customers owe the business

Gross profit

The amount remaining after subtracting the cost of goods sold from revenue

Accounts Payable

The amount the company owes for purchases it made on credit

Working capital

The difference between currant assets and current liabilities

Accounting

The process of recording,analyzing,and interpreting financial activities of a business

Data processing

The set of activities involved in obtaining,recording, Organizing, and maintaining the financial information of an organization

Balance sheet(statement of financial position )

a financial statement that reports a business's assets,liabilities, and capital on a specific date