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Invoice
What is a formal itemized bill that details goods or services provided, amounts owed, terms, and due date?
Financial Ratios
What are the tools to evaluate a company's financial health? A number divided by another, which the results tell us specific information about the health of the business.
Return on Investment (ROI)
What is the return on assets that indicates profitability and returns from investments made? It is calculated by dividing net profits by total assets.
Fixed Assets
What are long-term assets that cannot able to be converted to cash quickly? Examples include real estate and equipment.
Balance Sheet
What is a document that shows a company's assets, liabilities, and shareholders' equity at any given point? It provides details about a company's financial health.
Line of Credit
What is a loan that lets you borrow what you need up to a certain amount and only pay interest on the amount borrowed?
Return on Equity (ROE)
What is how well the company generating profits from the money put into the business? Expressed as a percentage, it is calculated by dividing net profit by owners' equity.
Liquid Assets
What are resources that can be converted to cash quickly with little or no loss to value? Examples could be physical cash, money in savings, or checking accounts.
Equity Capital
What is the funds raised through selling ownership of a company or using profits?
Collateral
What is an asset that is used for security on a loan that, if the loan is not paid, will be forfeited in the event of default?
Chart of Accounts (COA)
What is a detailed list of all financial accounts used by a company?
Illiquid Assets
What are assets that are difficult to convert into cash quickly without losing significant value? Examples include real estate or business ownership.
Debt Capital
What is borrowed money that a business uses for operations or growth? Can be obtained through loans or bonds and must be repaid with interest added.
Factoring
What is a business that sells its unpaid accounts receivable to a factoring company to get cash flow quicker?
What is physical money, such as bills and coins?
Income Statement
What is a financial report that shows a company's revenue and expenses, and profits or losses over a set period of time? Oftentimes, the time period is a month, quarter, or year. The income statement can reveal the health of the company.
Cash Flow Analysis Statement
What is a document that shows a company's inflows and outflows of cash over time? It shows the ability to pay debts, generate cash flow, and fund operations.
Accounts Receivable
What is money owed to a company by customers for goods and services that have been provided already?