Statements
A report showing revenue, expenses, and net income over a period.
Income Statement
Money invested in a business in return for ownership (shares).
Equity Capital
Currency, coins, and bank balances.
Cash
Metrics used to evaluate a company's financial performance.
Financial Ratios
A snapshot of assets, liabilities, and equity at a specific point in time.
Balance Sheet
Borrowed money that must be repaid over time, usually with interest.
Debt Capital
Money owed to the business by customers for goods/services sold on credit.
Accounts Receivable
A measure of profitability: Net Profit / Cost of Investment.
Return on Investment
A detailed report showing cash inflows and outflows (operating, investing, financing).
Cash Flow Analysis Statement
An arrangement allowing a business to borrow up to a certain limit as needed.
Line of Credit
Long-term tangible property (e.g., equipment, buildings) used in operations.
Fixed Assets
A measure of profitability for shareholders: Net Income / Shareholder Equity.
Return on Equity
A categorized list of every account in an organization’s accounting system.
Chart of Accounts
An asset pledged by a borrower to secure a loan.
Collateral
Assets that can be quickly converted to cash with little loss in value.
Liquid Assets
This type of ratio, which includes the Quick and Cash varieties, measures a company's ability to pay short-term debt using assets easily converted to cash.
Liquid Assets
An itemized commercial document issued by a seller to a buyer, detailing goods or services provided, their prices, and the payment terms.
Invoice
Selling accounts receivable to a third party at a discount for immediate cash.
Factoring
Assets that cannot be quickly converted to cash (e.g., real estate).
Illiquid Assets