Financial Statements
A bill sent by a seller to the buyer, requesting payment for goods or services.
Funds raised from the business’s owners or shareholders.
Equity capital
Money in the form of currency or bank balances that a business has on hand.
Cash
A flexible loan from a bank that allows a business to borrow up to a certain limit as needed.
Line of credit
A measure of the profitability of an investment, calculated as profit divided by investment cost.
Return on investment (ROI)
A financial statement showing a company’s assets, liabilities, and equity at a specific point in time.
Balance sheet
Money borrowed by a business, usually through loans or bonds.
Debt capital – Money borrowed by a business, usually through loans or bonds.
Long-term resources like buildings and equipment used in operations.
Fixed assets
Assets pledged by a borrower to secure a loan.
Collateral
A measure of how well a company uses shareholders’ equity to generate profits.
Return on equity (ROE)
A report showing a company’s revenues and expenses over a specific time period.
Income statement
The process of selling accounts receivable to a third party to receive immediate cash.
Factoring
Assets that can quickly and easily be converted into cash.
Liquid assets
A list of all accounts used by a business to record financial transactions.
Chart of accounts
Metrics used to evaluate a company’s financial performance (e.g., profit margin, debt-to-equity).
Financial ratios
A report showing how cash moves in and out of a business over time.
Cash flow analysis statement
Assets that cannot be easily converted into cash without loss of value or time.
Illiquid assets
Money owed to a business by customers for goods or services delivered.
Accounts receivable