Level 1
Items of value that you own
Assets
Money invested in a business in return for a share in the profits of the business
Equity Capital
Accounting records of the transactions you make
Journals
Accounting record that provides financial detail for a particular business item. Ex: cash, sales, rent, & utilities
Account
The use of the internet to fund a business venture or project by raising money from a large number of people
Crowdfunding
Amounts you owe to others
Liabilities
Money loaned to a business with the understanding that the money will be repaid within a certain time period, usually with interest
Debt Capital
Any business activity that changes assets, liabilities, or net worth
Transactions
A booklet used to record the dates & amounts of checks as well as the names of people or businesses to whom you have written checks
Check Register
This form of record keeping is made up of many accounts
Ledger
(Owner's Equity) The difference between assets and liabilities
Net Worth
Property that the borrower forfeits if he or she defaults on the loan
Collateral
Amounts owed to vendors for merchandise purchased on credit
Accounts Payable
A standard document, form or financial statement
Pro Forma
Assets Equation
Assets = Liabilities + Owner's Equity
The relation between the dollars you have borrowed & the dollars you have invested in your business
Debt-to-equity Ratio
This shows the business’s revenues & expenses incurred over a period of time & the resulting profit or loss
Income statement
The amounts owed to a business by its credit customers
Accounts Receivable
Individual or company that makes a living by investing in startup companies
Venture Capitalist
Net Cash Flow Equation
Cash Receipts - Cash Disbursement = Net Cash Flow
Before staring a business the owner needs to estimate (2)
Startup Costs & Personal Finances
An accounting report that describes the way cash flows into and out of your business over a period of time
Cash Flow Statement
A list of people who receive salary or wage payments from a business
Payroll
Loans that are not guaranteed with collateral.
Unsecured Loan
List the sources of equity capital (4)
Personal Contributions, Friends/Relatives, Venture Capitalist, Crowdfunding