| A | B |
|---|
| revenue | All income that a business receives over a period of time. |
| expenses | The costs of operating a business. |
| budget | Provides detailed plans for the financial needs of individuals, families, and businesses. |
| start-up budget | Plans income and expenses from 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. |
| cash budget | An estimate of the actual money received and paid out for a specific period. |
| financial records | Used to record and analyze the financial performance of a business. |
| assets | What a company owns. |
| liabilities | What a company owes. |
| owner's equity | The value of the owner's investment in the business. |
| balance sheet | The assets, liabilities, and owner's equity for a specific date are listed. |
| income statement | To report the revenue, expenses, and net income or loss from operations for a specific period, a business prepares this. |
| payroll | The financial record of employee compensation, deductions, and net pay. |
| payroll records | The documentation used to process earnings payments and record each employee's pay history. |
| direct deposit | The employer transfers net pay electronically into the employee's bank account. |
| financial performance ratios | Comparisons of a company's financial elements that indicate how well the business is performing. |
| discrepancies | Differences between actual and budgeted performance. |
