| A | B |
|---|
| accounting record systems | can EITHER require no equipment or be highly computerized |
| Outsourcing | occurs when an outside firm performs specialized tasks for a business |
| written record | where you keep track of all money taken out of the petty cash fund |
| book value | original cost- depreciation |
| budgets | THESE can help control operations expenses |
| profit or a loss | the primary reason businesses keep financial records is to determine if they have made |
| accounts payable record | money a business owes and the payments it makes for credit purchases are recorded in what account |
| W-4 form | An employer can determine the amount to withhold from an employee’s paycheck for tax purposes by using a table from the IRS plus the employee’s |
| operating | THIS budget includes projected sales, costs, and profits |
| cash receipts and borrowing | two main sources of cash coming into a company |
| liability | company purchases $1,000 worth of hamburger until it is paid the DEBT is considered THIS |
| income statements and balance sheets | financial reports that businesses use the most |
| cost of goods sold | amount a retailer pays to a supplier for goods it then resells |
| financial ratios | To determine whether or not a company is a good loan risk, lenders often review its |
| sales budget | an estimate of sales for a period of time |
| operating budget | Also called an income statement budget |
| capital budget | A financial plan used to determine when to replace or purchase fixed assets |
| liabilities | Claims against assets |
| depreciation | Gradual loss of value because of wear and tear |
| point of sale terminal | This speeds up the checkout process for consumers |
| Outsource | Resason a business might do THIS are lack of expertise in-house, less expensive than hiring in-house, lack of people to handle tasks in-house |
| data processing center | THIS prepares bills, keeps track of inventory, and prepares payroll |
| capital | aka: net worth, owner's equity, stockholder's equity |
