Vocabulary
a List of goods sent or services provided, with a statement of the sum due for these; a bill.
What is an invoice?
A relative magnitude of two selected numerical values taken from an enterprise's financial statements.
What are financial ratios?
A ratio between net income and investment.
What is a return on investment?
Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.
What are fixed assets?
What is a balance sheet?
A credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds
What is a line of credit?
The ratio between net income over a shareholder's equity
What is a return on equity?
Assets that can easily be converted into cash in a short amount of time.
What are liquid assets?
Equity capital is funds paid into a business by investors in exchange for common stock or preferred stock.
What is equity capital?
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.
What is collateral?
A list of financial accounts set up by an accountant for organization
What is a chart of accounts?
Assets that cannot easily and readily be sold or exchanged for cash without a substantial loss in value.
What are illiquid assets?
The capital that a business raises by taking out a loan/
What is debt capital?
A type of finance in which a business would sell its accounts receivable (invoices) to a third party to meet its short-term liquidity needs. Under the transaction between both parties, the factor would pay the amount due on the invoices minus its commission or fees.
What is factoring?
Money in coins or notes, distinct from checks, money order or credit
What is cash?
A financial statement that shows you the company's income and expenditures.
What is an income statement?
Afinancial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.
What is a cash flow analysis statement?
Legally enforceable claims for payment held by a business for goods supplied or services rendered that customers have ordered but not paid for.
What are accounts receivable?