chapter 6

4. special book or computer program in which transactions are recorded in the order that they occur
6. listing of the business's different accounts and their current balances, found in the different ledgers
10. captures the business's financial condition at a particular moment--somewhat like a photograph captures just one second of time
11. decisions that determine which projects a business will invest in how the investment(s) will be financed and whether or not to pay dividends to shareholders
13. journalizes income and expenditures at the time they occur even if no money changes hands at that time
14. records income and expenditures at the time the money changes hands
15. concerned with optimum utilization of resources
17. show the business's financial health
19. the final step of the accounting cycle involves closing any temporary accounts and transferring the temporary account balances to permanent accounts such as owner's equity
20. debts that the business owes

1. financial summary estimating when where and how much money will flow into and out of a business during a specific period of time
2. management of a firm’s current balance of assets and liabilities...involves accounts payable and receivable inventory and cash
3. amount the owner has invested in the business, plus or minus profits and losses
5. a measure of how well a business generates cash flow in relation to the capital it has already invested in itself
7. anything of value that the business owns
8. ycleofworkingcapitalmanagement ratio that refers to the number of days between a company’s paying for raw materials and receiving cash from selling the products made from those raw materials
9. the process of obtaining funds and using them to achieve the goals of the business
12. analyzing financial transactions journalizing transactions posting to ledger and balancing the books
16. shows how much money the business has made or lost during a specific period of time
18. the process of keeping financial records