| A | B |
|---|
| Revenue | all income that a business receives over a period of time. |
| Expenses | costs of operating a business. |
| Budget | detailed plans for the financial needs of a business. |
| Start-up budget | plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable. |
| Operating budget | describes the financial plan for ongoing operations of the business for a specific period of time. |
| Cash budget | an estimate of the actual money received and paid out for a specific period of time. |
| Financial records | financial documents that are used to record and analyze the financial performance of a business. |
| Assets | what a company owns; anything of value owned by a business. |
| Liabilities- | what a company owes. |
| Owner’s equity | the value of the business after liabilities are subtracted from assets; the value of the owner’s investment in the business. |
| Balance sheet | a report that lists a company’s assets, liabilities, and owner’s equity. |
| Income statement | a report of revenue, expenses, and net income or loss from operations for a specific period. |
| Payroll | the financial record of employee compensation, deductions, and net pay |
| Payroll record | a financial document that contains information on all employees of the company, their compensation, and benefits. |
| Direct deposit | funds are deposited electronically and available automatically for your use. |
| 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. |
