| A | B |
|---|
| financial plan | Am outline of expenses, needs, goals |
| asset | Property, item of value owned |
| financial forecast | Estimate of business conditions |
| accounting | Process of recording that helps the financial position of a business |
| financial manager | The person in charge of a business's financial planning, funding, and accounting |
| budget | Written plan of what you expect your income and expenses to be over a certain period of time |
| the Accounting Equation | Assets=Liabilites +Owners Equity |
| owner's equity | The claim on the assets by the owner |
| income statement | Report of net income or net loss over an accounting period |
| balance sheet | Rport of the financial state of a business on a certain date |
| long term liabilities | those that will be paid off in MORE than year |
| liability | Any amount your business owes |
| start-up budget | A plan for your income and expenses from the time you start your business to when it makes profit |
| cash budget | A plan for the actual money you expect to spend and earn on a daily, weekly or monthly basis |
| operating budget | A plan over how much you expect to spend and earn over a given period of time |
| revenue | the money coming into a business from doing what it is in business to do |
| expenses | the costs of doing business |
| social security | 6.2% paid from the employer and employee to support elderly in their retirement |
| payroll | employee compensation including gross pay, taxes and benefits |
| current liabilities | amounts a company will pay off within one year |
| current assets | cash and items that can readily be converted to cash |
| inventory records | records that identify the type and number of product on had for sale |
| direct deposit | when an employer transfers an employees paycheck to their employees account on pay day |
| Federal withholding tax | where the government receives the majority of its revenue (calaulated with a chart) |
| net pay | also known as take home pay, gross pay minum all taxes and deductions |
| Net Income | Revenue is greater than expenses |
| LIFO | inventory is valued with using the inventory purchased earliest in the year |
| FIFO | inventory is valued using the inventory on hand at the end of the year |
| What are the 3 components of a financial statement heading | Who (company name), what (type of the statement), when (date) |
