12-1 and 12-2

2. owner's equity is the value of the owner's investment in the business
4. financial records are used to record and analyze the financial performance of a business
5. all income that a business recieves over a period of time is called revenue
6. the start-up budget plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable
8. to report the revenue, expenses, and net income or loss from operations for a specific period, a business prepares an income statement
9. assets are what a company owns
10. a cash budget is an estimate of the actual money recieved and paid out for a specific period

1. expenses are the costs of operating a business
2. the opertaing budget describes the financial plan for ongoing operations of the business for a specific period
3. liabilities are what a company owes
7. the assets, liabilities, and owner's equity for a specific date are listed on the balance sheet
11. a budget provides detailed plans for the financial needs of individuals, families, and businesses