Financial Statements
A report that shows company’s revenues and expenses over a period of time to determine profitability.
Funds raised through issuing stocks representing ownership.
What is equity capital?
Long term tangible assets, such as equipment, that are used in business operations and not easily converted to cash.
Funds raised by a company through loans or bonds.
Debt capital
A snapshot of a company’s assets, liabilities, and equity at a specific point in time.
What is a balance sheet?
A business document that records a transaction and requests payment.
Chart of accounts
Assets that can be quickly converted to cash.
A flexible loan from a bank that a company can draw from as needed, up to a certain limit.
What is line of credit?
A profitability ratio that measures how effectively management uses company assets to generate profit.
What is return on equity?
Assets that are not easily sold or exchanged for cash without a substantial loss in value.
What is illiquid assets?
An asset pledged as security for a loan that can be seized if the borrow defaults.
Details the cash inflows and outflows from operating, investing, and financial activities.
What is a cash flow analysis statement?
A complete list of all accounts used in a business’s general ledger.
Chart of accounts
Money owed to the business by customers for goods or services.
What is accounts receivable?
A financing method where a business sells its accounts receivable to a third party (a factor) at a discount in exchange for cash.
Factoring
Mathematical comparisons of financial statement accounts used to assess company’s standing.