types of financial records
what is assets?
anything of value owned
what is a budget?
a written financial plan for business operations developed for a specific period of time
what are financial statements
reports that summarize financial data over a period of time, such as month, quarter, 6 months, or year.
what is cash flow?
movement of cash into and out of a business
what do accountants do?
establish systems for collecting, sorting, and summarizing all types of financial data
what is cash records?
a record of all cash coming in and going out should be recorded
what is operating budget?
a plan showing projected sales, costs, expenses, and profits for the ongoing operations of a business
what is a balance sheet?
its a financial statement that reports a business's assets, liabilities, and capital on a specific date.
what is the difference between current assets and current liabilities?
working captial
what are some examples of small-scale record systems?
manual records systems
affordable accounting software
cash register information to gather most of the information needed
what are financial records?
orginized summaries of a buisness's financial information and activities
what is an estimate of the flow of cash into and out of the business over a specified time period?
cash budget
what is the accounting equation?
Assets=Liabilities+Capital
what are financial ratios used for?
used to identify possible problems needing correction; examples are return on sales, inventory turnover, current ratio, return on investment
what is a record showing money owed and payments made for all credit purchases by the business?
accounts payable record
what is a record showing what each customer owes and pays?
Accounts receivable record
what type of budget is a financial plan for replacing fixed assets or acquiring new ones
capital budget
what is financial statement that reports information about revenues and expenses for specific period?
income statement
what do bankers do?
provide advice on how and where to get loans
what is depreciation?
the gradual loss of assets value due to age and wear
expensive assets of a business that are expected to last and be used for a long time is what type of asset?
Fixed asset
what is a sales budget?
sales budget is a forecast of the sales revenue a company expects to receive in a month,quarter, or a year
what is cost of goods sold?
the amount retailer pays the suppliers for the merchandise it buys and sells
who is an expert whom companies hire to help them solve problems within a specific area.
consultants
projects income and expenses from the beginning of a new business until it becomes profitable is what type of budget?
start-up budget