Busyness
Organization established as a separate existence for the purposes of taxes
Business Entity
Total dollar amount collected for goods and services provided
What are sales?
An asset that is expected to turn over or be converted to cash within a year
Current Asset
Written financial plan of a business for a specific period of time, expressed in dollars
Budget
The amount spent for one unit of a specific product or service
Unit cost
Market Price per share divided by Earning per share of common stock
Price-Earning Ratio
A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
Corporation
Amount of revenue from sales less the cost of goods
Gross Profit
First-In First-Out method of valuing ending inventory
FIFO
Statement that shows a company’s projected sales, costs, expenses, and net income
Budgeted Income Statement
Costs that remain constant regardless of change in business activity
Fixed cost
Net Income divided by Average Stockholders Equity
Return on Common Stockholders Equity
A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
Entrepreneur
A statement showing gross profit for each department
Departmental Statement of Gross Profit
Direct costs attributable to the goods sold by a business during the year
Cost of good sold
Statement that shows the projected net sales for a budget period
Sales Budget
The amount of sales at which net sales is equal to total costs and neither a net income nor a net loss occurs
Breakeven point
Currents Assets divided by Current Liabilities
Current Ratio
The assumption that a company has the resources to continue operating in the foreseeable future.
Going concern
The percentage relationship between one financial statement item and the total that includes that item
Component percentage
Merchandise or stock offered for sale to customers by retail, wholesale, or distribution businesses
Inventory
Statement showing budgeted income and expenses from activities other than normal operations
Other revenue and expenses budget
Net sales minus cost of merchandises sold
Gross Profit
Net Income (after tax) divided by Net Sales
Return on Net Sales
A commercial enterprise dedicated to the purchase of finished goods and their resale for a profit.
Merchandising Business
Merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand
Perpetual Inventory
Form used to record information about each item of merchandise on hand for a periodic inventory
Inventory records
Statement that reports projected cash payments for a budget period
Cash payments budget
Net sales minus all variable costs; used to determine the income available to cover fixed costs and provide a profit
Contribution Margin
Total stockholders equity divided by Number of shares of stock outstanding
Earnings per Share