Chapter 17 Flashcards
Financial Planning
the process of managing your money to achieve your financial goals.
Financial Management
the process of planning, organizing, and controlling an organization’s financial resources to achieve its goals.
Expense
a cost that businesses incur in running their operations.
Audit
a formal review of a person’s or organization’s records, finances, or compliance with standards.
Revenue
the total amount of money a business or government receives from sales, investments, or other operations
Accounting
the action or process of keeping financial accounts.
GAAP
Generally Accepted Accounting Principles. It’s a set of rules that dictate how to prepare, present, and report financial statements in the United States.
Business Entity
a legal structure that defines how a business operates, including how it conducts business, manages finances, and distributes profits.
Budget
an estimate of income and expenditure for a set period of time.
Fiscal Period
a 12-month accounting period used by businesses and governments to track their income and expenses.
Sales Forecast Budget
a financial plan that uses a sales budget as a goal and a sales forecast to assess progress towards that goal.
Sales Forecast
a prediction of a company’s future sales revenue over a specific period of time.
Start-up budget
a list of projected income and expenses for a new business during its first year.
Operating Budget
an estimate of the income and expenditure of a company or organization over a set period.
Cash Budget
a financial statement that estimates a company’s cash inflows and outflows over a specific period of time.
Sale on Account
a sale of goods or services where the buyer pays for the purchase at a later date.
Source Document
an original record or certified copy of data that serves as evidence of a transaction or event
Purchase on account
a purchase made using a credit account and paid for at a later date.
