| A | B |
|---|
| Accounting | The system of recording and reporting financial activity and transactions. |
| Audit | A formal examination of a company’s financial records for accuracy and compliance with regulations. |
| Budget | A plan that shows what you expect to earn and spend in a certain period of time. |
| Financial Statements | A written report which describes the financial health of a company; prepared on a quarterly and annual basis. |
| Balance Sheet | A report showing all assets, liabilities, and owner’s equity of a business as of a specific date. |
| Assets | Things (items) owned by a company. |
| Liabilities | Money owed by the business (debts, accounts payable) |
| Owner's Equity | Net worth of the business |
| Income Statement | A report showing the revenue, expenses, and income (or loss) of a business for a specific period of time. |
| Revenue | The amount of money that a company earns |
| Profit | Results when a business' income is greater than its expenses. |
| Expenses | Costs of maintaining and operating a business. |
| Loss | Results when a business' expenses are greater than its income. |
| Fiscal Period | The specific period of time covered by an accounting statement or report (1 month or year) |
| Statement of Change in Owner's Equity | Financial statement that reports the changes that have occurred in the owner's equity account during the fiscal period. |
| Financial Manager | Top-level professional who may have final responsibility for one of many aspects of a business’s financial activity, from accounting and taxation to preparing financial reports and supervising various financial departments of a company. |
| Accountant | A professional who produces and examines financial records, prepares financial reports and tax returns, and may give budget, tax, or investment advice to the company or customer. Some accountants have their own businesses and work for many clients, and others may work within the financial department of a company. |
| Certified Public Accountant (CPA) | Accountants who meet specific educational requirements and pass a national examination. |
| Auditor | A professional whose work mainly involves checking on the accuracy of work performed by bookkeepers and accountants, and checking to be sure a company is following all financial laws and regulations. |
| Bank Teller | Worker who handles bank deposits and withdrawals, sell traveler’s checks and foreign currency, accept loan payments, prepare certified checks or money orders, and may handle other duties. |
