Accounting
The systematic process of recording and reporting the financial position of a person or an organization
Accounting
Documents summarizing the changes resulting from business transactions that occur during an accounting period.
Financial statements
Rules that provide a way to communicate financial information to others
Generally Accepted Accounting Principles (GAAP)
A set of documents that outline the essential financial facts about a new firm or venture
Cash, equipment, buildings, supplies, inventory, and land
Examples of Assets
Anything of value that is owned or controlled
Property
A financial report that reports revenue, expenses, and net income or net loss for an accounting period
Income Statement
Assets that are either used up or converted to cash during the normal cycle of the business
Current Assets
Money supplied by investors, banks, or owners of a business. Start-up capital is the money used to pay for the various assets and expenses of a new venture or business
Capital
Business assets, remodeling costs, security deposits, advertising, insurance, supplies, legal permits, and licenses
Examples of start-up expenses
Property or other items of value owned by a business
Assets
A report of the balances in all asset, liability, and owner's equity accounts at the end of an accounting period
Balance Sheet
The total amount of money owed to a business. It represents money to be received in payments after goods or services are sold on credit
Accounts Receivable
An estimate of a business's financial outlook fo reach of the next few years
Financial Forecast
Payroll, rent, utility bills, delivery charges, and bank fees
Examples of operating expenses
Creditor's claims to the assets of a business
liabilities
The amount of money that is available to a business at any given time
Cash flows
Value of a piece of property less the amount still owed on the money borrowed to purchase it
Equity
A plan specifying how money will be issued or spent during a particular period
Budget
An estimate of a business's financial outlook for each of the next few years
Financial forecast
Items of value that are held for more than one year.
Fixed Assets
A financial report that shows incoming and outgoing money during an accounting period (often monthly or quarterly)
The total amount a business owes to creditors
Accounts Payable
To plan, figure, or estimate for the future
Project
Start-up budget, cash budget, operating budget