Business Essentials Module 4

An individual who has had specialized training in accounting procedures

• Accounting

• Accountant

• Administration of assets

• Finance

The process of keeping financial records

• Accounting

• Accountant

• Assets

• Accounting Standards

A process or series of steps that businesses complete to maintain their financial records effectively

• Accountant

• Balance Sheet

• Cash Flow Statement

• Accounting Cycle

Rules that accountants must follow when preparing financial statements

• Dividends

• Financial Statement

• Liabilities

• Accounting Standards

Finance activity involving making decisions about financing

• Acquisition of Funds

• Expenses

• Finance

• Income Statement

Finance activity involving making decisions about a firm’s investments

• Acquisition of Funds

• Administration of Assets

• Capital Investment Decisions

• Owner's Equity

Anything of value that a business owns

• Expenses

• Liabilities

• Assets

• Net Worth

A financial statement that captures the financial condition of the business at that particular moment

• Cash Flow Statement

• Financial Statement

• Balance Sheet

• Income Statement

Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders

• Income

• Capital Investment Decisions

• Dividends

• Income Statement

A financial summary with estimates as to when, where, and how much money will flow into and out of a business

• Financial Statement

• Income Statement

• Cash Flow Statement

• Owner's Equity