Financial Planning
set of documents that outlines the essential financial facts about a business
financial plan
a plan that helps you control spending
budget
anything of value that you own
asset
reports revenue, expenses, and profit for a business
income statement
systematic process of recording and analyzing transactions
accounting
anything of value that you own
asset
plan for actual money that a business spends on a regular basis
cash budget
creditors claims to your assets
liabilities
when revenue is greater than expenses
net income (profit)
set of accounting rules used to prepare repors
money supplied by investors or owners of the business
capital
a long term planning document determining what you will spend in the future
operating budget
owners claims to the assets
owners equity.
report that shows the equity or current worth of a business
Balance Sheet
items of value usually held on to for a long period of time
fixed asset
cost to the business
expense
creating a budget that allocates every dollar to a category leaving "no money unplanned for"
zero based budget
What is the accounting equation?
A + L+OE
statement that shows the actual money in and out of a busienss
Statement of Cash Flows
amount of money owed to a business
accounts receivable
written plan determining what you will do with your money & expenses
budget
all activities that include money
finance
assets used up or converted to cash in a normal accounting cycle
current asset
which statement shows the business at a SPECIFIC period of time
balance sheet
documents that summarize the changes of accounting transactions in a business cycle
financial statements