ENT - Financial Organziation

cash reserve

A _________________reserve can counterbalance the effect of unpaid accounts receivable

journal

A collection of accounts of a business is called

balance sheet

A quick ratio is calculated using amounts found on the ____________

tax laws

An important part of financial management is staying up to date on _______________

capital, assets and liabilities

Balance sheet shows

hire part-time help

Cost-control strategy

investigate cost and ID problems

If there is a big difference between costs and industry average an entrepreneur should?

prepare financial records, make business decisions, interpret financial records

Roles of an accountant

net income, revenues and expenses

The cash flow statement is constructed using

write off uncollectible expenses, timed deductions, claim research and development expenses

Ways to manage tax expenses

Tax deductions

When possible, _________ should be timed so they are taken during high income years

daily, monthly & weekly

When should entreprenuers keep/monitor financial records?

sales volume increases

advantage of offering credit to customers

improve profits

benefit to evaluating and adjusting profit planning

accounts payable

expenses incurred but not yet paid

cash flow

negotiating better credit terms can improve

keep owner informed, organize data and track company information

recordkeeping systems are important because

accounts receivable

sales made but not collected

creditors, lenders, owners

use ratio analysis to determine business financial strength

accrual method

when maintaining inventory of goods, income should be recorded using this accounting method