12.1
All income that a business receives over a period of time.
What is revenue
Used to record & analyze the financial performance of a business.
What are financial records.
Debts that will continue for longer than a year.
What are long-term liabilities
The financial record of employee compensation, deductions, & net pay
What is payroll
How do you find the current ratio
Current assets/Current liabilities
The costs of operating a business.
What is Expenses
Contain information on all employees of the company, their compensation, & benefits.
What are Payroll Records
Debts that will be paid within a year.
Sick leave and retirement plans are examples of...
What are employee benefits
How do you find debt to equity ratio?
Total Liabilities/ Owners equity
If revenue is greater than expenses, the business will make?
What is a proft.
List all cash received & paid by the business.
What are Cash Records
Include cash & items that can be readily converted to cash such as inventory & accounts receivable.
What are current assets
The federal government requires employers to withold these from employees paycheck.
What are income taxes.
What should the current ratio be to be considered healthy?
1:1
If expenses are greater than revenue the business will suffer a?
What is a loss
This account is what a business owes to others
What are Accounts Payable
Have a lifespan of more than a year. Common fixed assets are land, buildings, equipment, & expensive technology.
What are long term assets
Payroll systems also serve as this (keeps employees information)
What are personnel records.
Less than 2:1
This provides detailed plans for the financial needs of individuals, families, & businesses.
What is a budget.
This account is what the others owe the business
What are accounts receivable.
The value of the owner’s investment in the business.
What is Owner's Equity
Information in personnel record systems are kept...
What is confidential
What are the three steps of financial decision making?
1. Prepare
2. Look for discrepancies
3. Make needed adjustments