| A | B |
|---|
| Revenue | All income that a business receives over a period of time |
| Expenses | The costs of operating a business. |
| Budget | Detailed plans for the financial needs of individuals, families, and businesses. |
| Start-up budget | Plans income and expenses for 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. |
| Basic Financial Equation | Revenue - Expenses = Profit or Loss |
| Profit | Revenue > Expenses |
| Loss | Revenue < Expenses |
| Financial Planning | The task of determining how a business will afford to achieve its strategic goals and objectives. |
