| A | B |
|---|
| financial records | organised summaries of a business's financial information and activities |
| data processing center | a specialised business that provides a full set of computerised financial records to other businesses for a fee |
| outsourcing | hiring an outside firm to perform specialised tasks for a business |
| point-of-scale terminal | sophisticated cash registers connected to computers, each item sold is subtracted from inventory recorded in the computer |
| petty cash fund | a supply of cash maintained in a business for small emergency payments |
| account receivable record | businesses that sell on credit keep records detailing what each customer owes and pays |
| accounts payable record | businesses keep records showing money they owe and payments they make for all credit purchases |
| asset | anything of value owned |
| depreciation | gradual loss of an asset's value due to age and wear |
| fixed assets | expensive assets of a business that are expected to last and be used for a long time |
| financial statements | list assets and their values |
| budget | a written financial plan for business operations developed for a specific period of time |
| start-up budget | projects income and expenses from the beginning of a new business until it become profitable |
| operating budget | a plan showing projected sales, costs, expenses, and profits for the ongoing operations of a business |
| cash budget | an estimate of the flow of cash into and out of the business over a specified time period |
| capital budget | a financial plan for replacing fixed assets or acquiring new ones |
| sales budget | a forecast of the sales revenue a company expects to receive in a month |
| sales estimates | independent estimates for the sales and expenses of their unit |
| financial statements | reports that summarise financial data over a period of time, such as a month, three months, half a year, or a full year |
| balance sheet | or statement of financial position, is a financial statement that reports a business's assets, liabilities, and capital on a specific date |
| liabilities | claims against assets, or the businesses debts |
| capital | also called, net worth, owner's equity, or stockholders' equity, is the value of the owners' investment in the business after subtracting liabilities from assets |
| accounting equation | assets=Liabilities+Capital |
| income statement | or profit and loss statement, is a financial statement that reports information about a company's revenues and expenses for a specific period |
| expenses | all costs incurred in operating the business such as the cost of materials used to manufacture the company's products |
| profit or loss | the difference between the total revenue and total expanses |
| gross profit | the amount remaining after subtracting the cost of goods sold from revenue |
| net profit | the amount remaining after subtracting all expenses from revenue, except taxes |
| operating expenses | all expenses not directly associated with creating or buying merchandise the business sells |
| cash flow | the movement of cash into and out of a business |
| working capital | the difference between current assets and current liabilities |
| current | refers to assets and liabilities that are expected to be exchanged for cash within one year or less |
| certified public accountant (CPA) | a person who has met a state's education, experience, and examination requirements in accounting |
| accountants | establish systems for collecting, sorting, and summarising all types of financial data |
| consultant | an expert whom companies hire to help them solve problems within a specific area of expertise |
| small business administration (SBA) | an agency of the federal government that provides information, advice, and assistance in obtaining credit and other financial support for small businesses |
