Category 1
A financial report showing a company’s revenues and expenses over a specific period, indicating profit or loss.
What is Income Statement?
A report showing the movement of cash in and out of a business during a time period.
What is Cash Flow Statement?
A snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and owner's equity.
What is a Balance Sheet?
The total income generated from business operations before expenses are subtracted.
What is Revenue?
The costs required to run a business, such as rent, salaries, and utilities.
What is Expenses?
The amount of money left after all expenses have been deducted from total revenue.
What is Net Profit?
Revenue minus the cost of goods sold (COGS); it does not include other expenses like rent or salaries.
What is Gross Profit?
The direct costs of producing goods or services sold by the business.
What is Cost of Goods Sold?
The direct costs of producing goods or services sold by the business.
What is Operating Expenses?
The owner’s share of the company after liabilities are subtracted from assets.
What is Owners Equity?
Everything a business owns that has value, such as cash, equipment, and inventory.
What is Assets?
What a business owes to others, including loans and accounts payable.
What is Liabilities?
Assets that can be converted into cash within a year, like inventory and accounts receivable.
What is Current Assets?
Debts or obligations due within one year.
What is Current Liabilities?
Long-term assets such as buildings, land, or equipment.
What is Fixed Assets?
Money a business owes to suppliers or creditors.
What is Accounts Payable?
Money customers owe to the business for products or services sold on credit.
What is Accounts Receivable?
The level of sales at which total revenues equal total expenses, resulting in neither profit nor loss.
What is Break-even Point?
The ability of a business to meet short-term financial obligations.
What is Liquidity?
A comparison between two financial numbers used to evaluate business performance.
What is Financial Ratio?
A ratio that shows what percentage of sales has turned into profits.
What is Profit Margin?
Current assets minus current liabilities; indicates operational efficiency.
What is Working Capital?
Measures how much debt a company has for every dollar of equity.
What is Debt to Equity Ratio?
A measure of profitability that evaluates the efficiency of an investment.
What is Return on Investment?
Estimating future financial outcomes based on historical data and market trends.
What is Financial Forcasting?