Values I
Resources obtained that turns into value, this type is strictly cash
What is liquid Assests
When a new business raises money through a loan
What is debt capital
A recording of all revenues, expenses, and taxes for a specific period of time to see how much money you make
What is an income statement
What is an invoice
One of the oldest forms of doing business involving selling an accounts receivable to a third party
What is Factoring
An approach a business takes to raise money by selling shares in the company to investors
A snapshot of what your business has and what it owes at a given point in time
What is a balance sheet
This is in business accounts, including everything that is in checking, savings, and short-term investment accounts
What is cash
Resources that will last more than a year like equipment, property, and buildings
What are fixed assets
Resources that are hard to sell like investments or stock
What are illiquid assets
A sheet that shows how much money came into the business, where it came from, and the cash that went out, and where, over a given period of time
What is cash a flow statement
A type of punishment you agree to if you fail to pay a loan
What is collateral
This ratio is found by dividing net profit by total assets
What is ROI (return on investments)
An organizational tool that provides a digestible breakdown of all the financial transactions of a business
What is chart of accounts
In addition to a loan, you can receive this as a preset borrowing limit that can be used at any time
What is a line of credit
This ratio is found by the net profit divided by owner’s equity
What is ROE (return on equity)
This is a tool to evaluate a company’s economic performance by dividing one number by another to get a solution
What are financial ratios
This is the dollar amount of credit sales that are not collected in cash
What is accounts receivable