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