Vocab
All income that a business receives
Revenue
What a company owns
Asset
This tax is based upon salary, marital status and how many dependents you have
Income Tax
Current Ratio is a comparison of what two elements
hint: they are on the balance sheet
Current assets and current liabilities
What is the basic financial equation?
Revenue-Expenses=Profit or Loss
All costs of operating a business
Expenses
what a company owes?
Liability
These two payments are referred to as FICA
Social Security and Medicare
Debt to Equity ratio is the company's liabilities divided by what?
Owner's equity
What three components are located on the balance sheet?
Assets, Liabilities and Owner's Equity
the value of the owner's investment in the business
owner's equity
Plans income and expenses from the beginning until it becomes profitable
start-up budget
You pay this tax in the event that you could lose your job through no fault of your own
Unemployment Tax
Return on equity ratio compares what two elements
hint: one is on income statement other on balance sheet
Net profit and owner's equity
Company A had a revenue of $27,600 and expenses of $33,800
What was the Net Income or Net Loss?
Net Loss $6200
used to record and analyze the financial performance of a business
Financial Records
differences between the actual and budgeted performance
Discrepancies
Joseph's gross salary is $450 what did he pay in Medicare?
Medicare is 1.45%
$6.53
Net income ratio compares what?
Total sales and Net Income
Total Liabilities and Owner's equity equaled $725,690. What should Assets equal?
$725,690
the documentation used to process earnings payments and record each employee's pay history
Payroll records
comparison of a company's financial elements that indicate how well the business is performing
Financial performance ratios
Caleb R made $200 gross what was his net pay?
Income tax-0, Social Security-6.2%, Medicare-1.45%
$184.70
What is the current ratio if current assets=$30,000 and current liabilities=$20,000
1.5:1
Where can the the information to the complete the financial performance ratios be found?
Income Statement and Balance Sheet