| A | B |
|---|
| financial records | organized summaries of a businesses financial information and activities |
| record-keeping system | a manual or automated process of collecting, organizing, and maintaining the financial information of a business |
| accounting | the process of recording, analyzing, and interpreting financial activities of a business |
| data processing | the set of activities involved in obtaining, recording, organizing, and maintaining the financial information of an organization. |
| cash receipts | money taken in by a business |
| cash disbursements | cash payments made by a business |
| accounts receivable record | shows what each customer purchases, pays, and owes |
| accounts payable record | identifies the credit purchases of a business, amounts owed, and payments made |
| asset | anything of value owned |
| depreciation | the gradual loss of an assets value due to age and wear |
| fixed assets | expensive assets of a business that are expected to last and be used for a long time |
| book value | the total amount of depreciation deducted from the assets original value |
| budget | a written financial plan for a business operations for a specified period of time |
| start up budget | projects income and expenses from the beginning of a new business until it is expected to become profitable |
| operating budget | a plan showing projected sales, cost, expenses, and profits for the ongoing operations of a business |
| cash budget | an estimate of the flow of cash into and out of the business to over a specified period of time |
| capital budget | a financial plan for replacing fixed assets or acquiring new ones |
| sales budget | a forecast of the sales revenue a company expects to receive in a month, a quarter, or a year. |
