Financing
"An approach to raising capital by selling shares in the company to investors"
What is equity financing?
"Assets that will last more than one year and include the value of all equipment and property"
What are fixed assets?
"A financial document that shows what your business has and what it owes at a given point in time"
What is a balance sheet?
"A measurement that can be used to determine profitability on returns from investments made"
What is ROI?
"Lists each account for the business and categorizes them according to the financial statements where they are recorded"
What is chart of accounts?
"When a new business raises money through a loan, which they promise to repay over a set period of time"
What is debt financing?
"Assets that can be used in a year or less which are easily changed into cash"
What are liquid assets?
"Monetary funds that can be used to buy goods or services"
What is cash?
What is money?
"Measuring how well you are generating profits from the money invested in a business and calculated using net profit"
What is ROE?
"A document that details the cost of a sale of a good or sevice"
What is an invoice?
"Open bank loan that a business owner can access as necessary for operating expenses"
What is line of credit?
"Investments or properties that cannot be quickly sold or converted into cash without a significant delay or a major loss in value"
What are illiquid assets?
"The total amount of income to be received from outside parties. Some companies collect this income faster by a transaction called factoring"
What is accounts recievable?
"Tools to evaluate a company’s financial performance"
What is financial ratios?
What are financial ratios?
What is a financial ratio?
"Also called a profit and loss or P&L statement"
What is an income statement?
"Something of value pledged as security for repayment of a loan"
What is collateral?
"Analyzing how cash moves into and out of a business during a specific reporting period by ignoring non-cash accounting items"
What is cash flow analysis statement?
What is cash flow analysis?
"Selling an account receivable to another company at a discount to raise cash."
What is factoring?