Chapter 12 Key Terms

1. a report of revenue, expenses, and net income or loss from operations for a specific period.
4. a report that lists a company’s assets, liabilities, and owner’s equity at a specific point in time.
5. describes the financial plan for ongoing operations of the business for a specific period of time.
8. financial documents that are used to record and analyze the financial performance of a business.
10. all income that a business receives over a period of time; government income.
12. an estimate of the actual money received and paid out for a specific period of time.
13. a budget that plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
16. documentation used to process earnings payments and record each employee’s pay history.
17. what a company owes.

2. costs of operating a business.
3. the process by which funds are deposited electronically and available automatically for your use.
6. comparisons of a company’s financial elements that indicate how well the business is performing.
7. differences between actual and budgeted performance.
9. the value of the business after liabilities are subtracted from assets; the value of the owner’s investment in the business.
11. what a company owns; anything of value owned by a business.
14. detailed plans for the financial needs of individuals, families, and businesses.
15. the financial record of employee compensation, deductions, and net pay.