Financial Business Terms

When your accountant tell you there are 5 customers that have not finished paying their bill they are referring to

• Accounts Payable

• Depreciation

• Cash Flow

• Accounts Receivable

When your accountant is worried about you owing too much to your suppliers they are referring to your business's

• Depreciation

• Accounts Payable

• Accounts Receivable

• Cash Flow

Besides accounts payable and accounts receivable what else do accountants do for the business?

• Marketing

• Management

• Paying state and federal taxes

• Proper staff training

Which of the following would depreciate in value over the next year?

• Diamond

• Minivan

• Cell phone

• Gold

• TV

Depreciation is:

• When the value goes up after buying the product

• Not appreciating what you bought for your business

• When a product is sent overseas

• When the value goes down after buying the product

Why is the accounting side of the business so important?

• Owners need proper training to have an effective operation

• Owners need this department to spread the word about their product

• Owners need to know if they are making a profit while keeping up with a budget

• Owners need to sign everyone up for healthcare

Check the two accounting documents we went over in class

• Cash Flow Tracker

• Balance Sheet

• Cash Portfolio

• Income Statement

Fiscal Year: A 1 year period used for accounting purposes. Starts the date the business starts (Ex. March 21-March 20)

• True

• False

Revenue is

• Capital made before paying bills and taxes

• Capital made after paying taxes

• Capital made after paying bills