Chapter 17: Managing Business Finances

Microsoft Excel

________ is a spreadsheet application that is commonly used in business.

Assets

________ are property and other items of value owned by a business.

Accounts payable

________ represents the short- term liabilities that a business owes to creditors.

Deloitte Touche Tohmatsu®

PricewaterhouseCoopers®, ________, Ernst & Young®, and KPMG® are accounting firms that operate worldwide.

GAAP

All accountants use the same set of rules, called generally accepted accounting principles, or ________ (pronounced gap), to prepare reports.

Liabilities

________ are the rights that creditors have to the assets.

Equity

________ is the present value of an asset less all claims against it.

software

Accounting ________ such as Peachtree Accounting and QuickBooks are programs that help people and businesses manage their finances.

new venture

Start- up capital is the money used to pay for the various assets and expenses of a(n) ________ or business.

Accounts receivable

________ is the total amount of money owed to a business.

Financial plan

A(n) ________ estimates the amount of capital the business will need.

Audit

A(n) ________ is a review of accounting records and procedures.

current assets

Cash, supplies, merchandise, and accounts receivable are all ________.

Financial statements

________ are documents that summarize the changes resulting from business transactions that occur during an accounting period.

Owners equity

________ shows the rights that the owner has to the assets.

Cash flows

________ are the money that is available to a business at any given time.

Capital

________ is money supplied by investors, banks, or owners of a business.

balance sheet

A(n) ________ is a report of the balances in all assets, liabil- ity, and owners equity accounts at the end of an accounting period.

Property

________ is anything of value that is owned or controlled.

Financial reports

________ are summarized information about the financial status of a business.

Income statements

________ for different types of business operations vary in content.

Liabilities

________ are creditors claims to the assets of a business.

financial plan

A(n) ________ explains how a business will manage its records.

Current assets

________ are assets that are either used up or converted to cash during the normal cycle of the business.

Owners equity

________ is an owners claim to the assets of the business.

financial plan

A(n) ________ is a set of documents that outline the essential financial facts about the new venture.

A balance sheet is a report of the balances in all assets, liabil

ity, and owners equity accounts at the end of an accounting period