Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

18 Cards in this Set

  • Front
  • Back
what are the 2 purposes of business budget?
to anticipate sources and amounts of income and to predict the types and amounts of expenses for a specific business activity or the entire business
the most important step in financial planning
developing a budget
plans income and expenses from the beginning of the business until it becomes profitable
start-up budget
describes the financial plan for the day-to-day operations of the business
operating budget
an estimate of the actual money received and paid out for a specific time period
cash budget
what skills are required when preparing the business budget?
financial information, computer skills, basic math skills, effective communications skills
list all cash receipts and disbursements
cash records
identify all credit purchases and sales
records of accounts
identify the type and quality of products available for sale
inventory records
contain information on al lemployees of the company and their earnings
payroll records
identify the buildings and equipment owned by the business, their original and currnet value, and the amount owed if money was borrowed to purchase the assets.
asset records
steps in the budget process
1. prepare a list of each type of revenue and expenses that will be a part of the budget
2. gather information
3.create the budget using computer
4. show and explain the budget to ppl
reports that summarize the financial performance of a business
financial statements
what are the 2 most used financial statements?
balance sheet, and income statement
list the assets, liabilities, and owner's equity
balance sheet
reports the revenues, expenses, and net income or loss from business operations for a specific period
income statement
derive when income is greater than expenses
net income
when expenses is greater than income
net loss