Financial Business Skills Flashcards
anything your business owns
assets
a document that provides a financial overview of a business at a given point in time in terms of its assets and liabilities
balance sheet
the point at which all costs are covered and your business begins to earn a profit
break even analysis
a document that indicates how much money is flowing in and out of a business on a regular basis
cash flow statement
what is costs to provide the products and services that you sell
cost of goods sold
the number used to identify businesses that maintain employees
employer identification number (EIN)
a joint program between state and federal government that is used to cover employees who lose their jobs and file for unemployment assistance
federal unemployment tax
the standard procedures established by the accounting profession
generally accepted accounting principles (GAAP)
the total amount of money a business taken in from the sale of products and/or services
gross profit
a profit and loss statement
income statement
the number issued by the IRS to a nonresident or resident alien working in the Unitied States to process his or her tax obligation to the US government
individual tax identification number (ITIN)
a policy that provides protection against business casualties; the transfer or risk to a third party, as in the form of an insurance policy
insurance
the amount of debt or money your business owes to creditors
liabilities
the real income of a business after all of the expenses associated with operation are subtracted
net profit
the owner’s interest in the assets of the company after all of the business’s liabilities have been deducted
owner’s equity
