Credit
Ability to acquire money, goods, or services without immediate payment
What is something that you would buy with a long term loan?
House or Car
What is Revenue?
Provide examples of assets.
House, car, cash, and other things that are worth money.
How is credit score calculated?
It goes based off of repayment history, collateral, other information about the borrower
What is a loan?
What are sales figures?
They represent the amount of revenue generated by the business.
what is the difference between liquid and illiquid assets.
Illiquid assets cannot be converted to cash easily.
What is a good credit score?
Anything above 700.
How long do you have to pay back a short term loan?
Less than 18 months.
What is the difference between fixed and flexible expenses?
Fixed expenses are necessary to run the business
Flexible expenses are necessary but do not have the same price all the time.
What is the most liquid asset?
Cash
What are Revolving Credit Accounts?
A joint credit account that is spread out throughout multiple people. This can include business lines and personal lines.
How long do you to pay back intermediate loans?
they can be paid back anytime from 18 months to 10 years.
What is the difference between Operating and non-operating revenue?
Operating is income made directly from the things that you sell.
Non-operating is made from things that are not the primary goal of the business. This includes things like tips.
Who sets accounting principles?