Small Business Accounting

3. a current medium of exchange in the form of coins and banknotes; coins and banknotes collectively.
9. The value of current assets divided by current liabilities.
10. A measure of how quickly a company can raise money through internal sources by converting assets to cash.
11. Pro Shows revenue, expenses, and profit over a period.
13. Provides a snapshot of the company’s financial position at a specific date.
17. What the business owns (e.g., cash, inventory).
18. Money earned from selling goods or services.
19. (1) The sum of all the profits and losses that the business experiences from formation. (2) A balance sheet item in owners' equity that reflects the wealth created by the business from its formation.

1. What the business owes (e.g., loans, accounts payable).
2. Regular and systematic reduction in income that transfers asset value to expense over time.
4. the management of large amounts of money, especially by governments or large companies.
5. Planning documents for future business activities that are formatted to look like the common financial statements of the income statement, balance sheet, and statement of cash flows.
6. Those costs that change with each unit produced, for example, raw materials.
7. Tracks cash inflows and outflows from operations, investing, and financing.
8. Those costs that remain constant regardless of the quantity of output, for example, rent.
12. The standardized rules for accounting procedures set out by the Financial Accounting Standards Board and used in all audits and submissions of accounting reports to the government.
14. The owner's interest in the business (Assets - Liabilities).
15. Costs incurred to run the business.
16. A financial plan for the future based on a single level of operations; a quantitative expression of the use of resources necessary to achieve a business’s strategic goals.