| A | B |
|---|
| Trade Discount | Price allowances given for carrying out some function for the manufacturer. |
| Promotional pricing | Lower prices offered for limited periods of time to stimulate sales. |
| Cash discounts | Percentage off price given to customers for prompt payment. |
| Price lining | Involves pricing all the items in a certain category the same |
| Quantity discount | Price reduction to encourage buyers to order larger quantities |
| Promotional discounts | Price considerations for carrying out promotional activities. |
| Fixed costs | An expense that does not change with the number of units produced |
| Pro forma income statement | A statement that projects what the income will be during the next planning period |
| Cash budget | A Financial report that shows the difference between estimated and actual cash flow |
| Income statement | A financial report that shows how much a business has earned or lost during a year |
| Ratio analysis | An analysis that compares numbers from a balance sheet or income statement |
| Current assets | Cash, or things that can be converted to cash, that a business uses up within a year |
| Credit bureaus | Organizations that can provide a person’s credit information to their member businesses |
| Variable costs | Business expenses that change with each unit of product produced, such as utilities or wages. |
| Capital expenditures | Long-term commitments of large sums of money to buy or replace equipment |
| Return on equity | The amount of money earned for each dollar invested by the owner |
| Current liabilities | Debts due within a year |
| Balance sheet | A financial statement that tells you what your business is worth at any given time |
| Trade credit agencies | Organizations that collect credit information on businesses and proved ratings for a fee |
| Working capital | Current assets minus current liabilities equals |
| Variable expenses | Expenses that change with each unit of product are |
| Fixed expenses | Expenses that remain the same no matter how man unites are produced are |
| Cash budget | A projection based on past operating records is a |
| Capital expenditures | Long term commitments of large sums of money for equipment or buildings are |
| Cash | In order to meet obligations to employees, lenders, and suppliers, a business has to have |
| Cash reserve | A ______________ can counterbalance the effect of unpaid accounts receivable |
| Cash flow | It is possible to improve ____________ by negotiating better credit terms. |
| Cash surpluses | Short-term investment of ___________ can contribute to a business’s financial picture over time. |
| Tax deductions | Where possible, ________________ should be timed so they are taken during high income years. |
| Business expenses | Records should be kept of all _________ for tax purposes. |
| Tax laws | An important part of financial management is staying up to date on |
