| 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 |
| Owner's Equity | 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. |
