Entrep(2nd quarter) (Finals) Flashcards
a report that shows the (financial activities) and performance of a business.
Financial Statement
It is
used by lenders and investors to check a business’s (financial health) and earnings potential.
Financial
Statement
focuses
on the (revenue), expenses,
gains, and losses of a
company during a particular
period
income statement
There is usually a (very close relationship) between Sales and Cost of Sales (or Cost of
Goods Sold). Many Companies, in determining
their selling prices, conveniently add a specific
percentage mark-up or margin to the Cost of
Sales, thus establishing a predictable ratio
between the two items.
Income Statement
Forecasting
Cost of goods sold
Cost of sales
amount of goods sold
Sales
financial report that
(summarizes) the financial state of a
business at a point in time.
Balance Sheet
It
provides an (overview) of the value
of a business’s assets, liabilities, and
owner’s equity.
Balance sheet
The Current Assets of the balance Sheet
include Cash, (Marketable Securities), Accounts Receivables, Inventories (Raw Materials, Work-in-Process, and Finished Goods), and other current Assets. Assets in the Balance Sheet must always equal liabilities and owners’ equity.
Balance Sheet
Forecasting
Forecasting what the Balance Sheet of an
enterprise will look like in the (future)
depends a lot on the future Sales.
Balance Sheet
Forecasting
is the cash that flows into and out
of( various financial assets) for specific periods of time
Funds Flow
It’s usually measured
on a (monthly or quarterly basis.) ____ doesn’t measure the
performance of any single asset but
emphasizes how cash is moving.
Funds Flow
the financial
forecaster should (compute) for the increase or decrease in the different items found in the Assets and Liabilities columns, when comparing the actual or previous year’s Balance Sheet and the Pro Forma Balance Sheet. Decreases in Assets and increases in Liabilities are sources of funds, while increases in Assets and Decreases in Liabilities are uses of funds.
Funds Flow
Forecasting
is a (measurement) of the
amount of cash that comes into
and out of your business in a
particular period of time.
CashFlow
The entrepreneur or (finance manager) is
concerned about the enterprise’s survival
on a day-to-day basis as well as its
long-term sustainability
Cash Flow
Forecasting
_____________ is a
precious commodity that will make the
enterprise live on and on.
Cash
was introduced as a
method to evaluate business
investments.
The Income and Cash payback period
The construction
and forecasting of _________________ would help the
entrepreneur get a firmer grip
on the viability of his or her
enterprise.
Financial
Statements
The systematic method of
recording and processing
financial transactions
Bookkeeping
A _______________ is an
employee of a small to midsize entity that performs the
processing and recording of
the day-to-day financial
operations of a business
bookkeeper
After the bookkeeper records
transactions, the ____________ or
the business owner will review the
bookkeeper’s work and make the
required adjusting entries before
the company’s financial
statements are finalized.
accountant
The method of using
debit and credit to
record a transaction
is called the _______________
double entry bookkeeping
Father of
Modern
Accounting
Luca Pacioli
Luca Pacioli occupations
Italian mathematician
represents a transaction or (relocation) of
funds from one account to
another when using a double-entry
accounting system
a debit
Instead of transactions with
(positive) or neutral values, credits
represent a decrease in assets or an
increase in liabilities
Credits
Mark-up a.k.a?
Margin
Decreases in assets and increases in liabilities
Sources of funds (see funds flow)
Increases in assets and decreases in liabilities
Uses of funds (see funds flow)
