Chapter 17 Flashcards
(44 cards)
Financial planning…
is the process of setting financial goals and developing plans to reach them
Revenue…
is the earnings that a business receives for the goods and services it sells
Expense…
are costs in operating business
Financial management…
is a process used to manage the financial resources of a business
Accounting…
is the system of recording business transactions and analyzing, verifying, and reporting the results
Generally accepted accounting principles (GAAP)…
are the rules, standards, and practices businesses follow to record and report financial information
Audit…
is a review of the financial statements of a business and the accounting practices that were used to produce them
Business entity…
is an organization that exists independently of the owner’s personal finances
Fiscal period…
is the period for which a business summarizes accounting information and prepares financial statements; the accounting period
Budget…
How much you can spend
Sales forecast budget…
is projected sales units and revenue dollars for the period
Sales forecast…
Prediction of future sales based on past sales
Start-up budget…
A budget created in the planning stages for a new business
Operating budget…
is a projection of the sales revenue that will be earned and the expenses that will be incurred during a future period
Cash budget…
is used to estimate the amount of money coming into and going out of the business
Source document…
are records that prove a business transaction occurred.
17.2 starts at 18 :)
Merchandise…
is an item, or items, bought with the intention of reselling to customers
Payroll…
is largest expense for businesses
Withholding allowance…
is an amount of income that is not subject to income taxes
Dependent…
is an individual who relies on someone else for financial support
Employee’s earnings record…
is an individual record maintained for each employee
Payroll register…
is a summary of the earnings, payroll deductions, and net pay for all employees recorded for each payroll period
Gross pay…
is amount of income earned before taxes and other deductions are withheld
