| A | B |
|---|
| Assets | All of the things a business owns and uses as a part of business operations. |
| Balance Sheet | identifies the assets, liabilities, and equity of a business as of a specific date. |
| Budget discrepancies | differences between budgeted amounts and actual financial performance |
| Business Financial Goals | goals that establish direction for financial plans of a business |
| Capital budget | a plan to acquire and finance long-term assets of a business |
| cash flow statement | shows how cash is used by a business during a specified time period. |
| collateral | an asset promised by a business to a creditor if repayment of a loan isn't completed. |
| creditor | an individual or an organization that provides funds to a business, with repayment of the funds & agreed-upon interest due at a future date; also, a business that extends credit to a customer. |
| depreciation | a decline in the value of an asset as it ages. |
| financial budget | a projected financial statement for specific future time period. |
| Financial Statements | specific reports prepared according to accepted accounting standards that provide financial information about an enterprise. |
| Income Statement | provides a view of the financial changes in a business that have occurred during a specific period of time. |
| Interest | the amount paid for the privilege of borrowing money. |
| Interest rate | the cost of borrowing money, expressed as a percentage of the amount borrowed, usually over a period of time. |
| Liabilities | Claims against business rescources by those to whom the business has financial obligations, also, an individual or business responsible to others for negligence. |
| Operating budget | budget that projects all income and expenses for the operations of a business for a specific future time period. |
| Owner's Equity | the total value that all owners and investors have in the firm. |
| Principal | the amount of money borrowed. |
| Trend Analysis | examining financial performance over several periods of time to determine patterns. |
