4.01 Vocabulary

2. A financial summary as to when, where, and how much money will flow into and out of a business
4. Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders
8. Finance activity involving making decisions about financing
11. The amount an owner has invested in the business plus or minus profits and losses
13. The process of keeping financial records
16. A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement
17. a method of accounting that records transactions at the time they occur.
18. A sum of money paid to an investor or stockholder as earnings on an investment
19. The monies that a business spends; also called expenditures
20. Anything of value that a business owns

1. People within the business who use financial information – owners, managers, and employees.
3. In business, the function that involves all money and money management matters
5. An individual who has had specialized training in accounting procedures
6. A financial statement that captures the financial condition of the business at that particular moment
7. A summary of accounting information
8. A process or series of steps that businesses complete to maintain their financial records effectively
9. The total value of the business
10. Finance activity involving making decisions about a firm’s investments
12. Money received by a business or an individual from outside sources
14. Debts that the business owes
15. people outside the business who use accounting information – suppliers, banks, customers, lenders, investors, and tax authorities.
20. Rules that accountants must follow when preparing financial statements