| A | B |
|---|
| Budget | A financial road map used by individuals and companies as a guide for spending and saving. |
| Comparative financial statements | Financial statements that provide information for multiple fiscal periods. |
| Deficit | A negative balance that remains after total expenses are subtracted from total income. |
| Financial accounting | The area of accounting which focuses on reporting information to external users. |
| Financial ratio | A comparison between two components of financial information. |
| Interim financial statements | Financial statements providing information for a time period shorter than the fiscal year. |
| Managerial accounting | The area of accounting which focuses on reporting information to internal users. |
| Pay yourself first | A budgeting strategy of setting aside at least 10% of after-tax income for saving and investing. |
| Ratio analysis | The calculation and interpretation of a financial ratio. |
| Return on sales | The ratio of net income to total sales. |
| Stakeholders | Any persons or groups who will be affected by an action. |
| Surplus | A positive balance that remains after total expenses are subtracted from total income. |
| Vertical analysis | Reporting an amount on a financial statement as a percentage of another item on the same financial statement. |
