Terminologies: DECA Business Management and Administration Exam Guide |Graded A+|

Terminologies: DECA Business Management and Administration Exam Gude |Graded A+| Annual Receipts *Ans* "Receipts" means total income (or in the case of a sole proprietorship, "gross income") plus "cost of goods sold" as these terms are defined and reported on Internal Revenue Service tax return forms. Business Plan *Ans* A written outline that evaluates all aspects of your business. Business Profile *Ans* A type of definition that summarizes the important characteristics of the business and helps to identify areas for improvement. Calendar Tax Year *Ans* 12 consecutive months beginning January 1 and ending December 31. Fiscal Tax Year *Ans* 12 consecutive months ending on the last day of any month other than December, or a 52-53 week year. Capital *Ans* The funds and assets invested in a business by the owners Cash Basis of Accounting *Ans* Method of accounting in which you recognize income when you receive the cash and expense when you receive the bill Accrual Basis of Accounting *Ans* Method of accounting in which you match revenue with expense regardless of when the cash may or may not be collected Cash Flow Control *Ans* A simple method of projecting your future needs for cash Commodity Business *Ans* A business for which you must have the lowest cost to survive Contract *Ans* A mutually binding legal relationship obligating the sell to furnish supplies or services and the buyer to pay for them Corporation *Ans* A group of persons granted a state charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of its members Credit Rating *Ans* A grade assigned to a business concern to denote the net worth and credit standing to which the concern is entitled in the opinion of the rating agency as a result of its investigation.