chapter 17

Question 1

Finance

Answer 1

Financial planning is the process of setting financial goals and developing plans to reach them
Smart Goals
Long-Term and short-term
Revenue is the earnings that a business receives for the goods and services it sells.

Question 2

Financial

Answer 2

management is a process used to manage the financial resources of a business

Question 3

Finance

Answer 3

Accounting is the system of recording business transactions and analyzing, verifying, and reporting the results.

Question 4

Business entity

Answer 4

is an organization that exists independently of the owner’s personal finances

Question 5

Fiscal period

Answer 5

is the period for which a business summarizes accounting info and prepares financial statements; the accounting period.

Question 6

A business budget

Answer 6

is a financial plan that reflects anticipated revenue and expenses and shows how it will be allocated in the operation of the business.

Question 7

Cost control

Answer 7

Monitoring costs to stay within the planned budget

Question 8

Discrepancy

Answer 8

Difference between the budgeted amount and the actual amount

Question 9

Merchandise

Answer 9

goods to be bought and sold.

Question 10

payroll

Answer 10

the compensation a business must pay to its employees for a set period and on a given date

Question 11

Withholding allowance

Answer 11

an exemption from tax for a portion of your wages

Question 12

dependent

Answer 12

contingent on or determined by.

Question 13

employee’s earnings record

Answer 13

a document maintained by an employer that tracks the total amount of money earned by each employee over a period of time

Question 14

payroll register

Answer 14

a record of employee payroll information for a specific pay period

Question 15

Gross pay

Answer 15

the total amount of money an employee earns before taxes and other deductions are taken out.

Question 16

Account

Answer 16

a report or description of an event or experience.

Question 17

Chart of account

Answer 17

A chart of accounts (COA) is a list of all the financial accounts a business uses to track its transactions.

Question 18

Double entry accounting

Answer 18

Double-entry accounting is a bookkeeping system that records every financial transaction in at least two accounts.

Question 19

Journal

Answer 19

a newspaper or magazine that deals with a particular subject or professional activity.

Question 20

Journalizing

Answer 20

enter (notes or information) in a journal or account book.

Question 21

Ledger

Answer 21

a book or other collection of financial accounts of a particular type.