Financial Statements
This statement shows revenue, expenses, and profit over a period.
Income statement
Money invested in a business by its owners.
Equity capital
Money a business has available immediately for use.
Cash
Calculations used to analyze a company’s financial performance
Financial ratios
A document sent to a buyer requesting payment for goods/services
Invoice
A report showing a company’s assets, liabilities, and equity at a single point in time.
Balance sheet
Money borrowed by a business that must be repaid with interest.
Debt capital
Money owed to the business by customers.
Accounts receivable
Profitability ratio showing returns relative to investment
Return on investment
An index of all financial accounts in a business
Chart of accounts
Shows inflows and outflows of cash during a period.
Cash flow analysis statement
Assets pledged to secure a loan.
Collateral
Long-term assets like equipment or property.
Fixed assets
Ratio measuring profit relative to owner’s equity
Return on equity
Selling accounts receivable to a third party to get cash.
Factoring
Assets that can easily be converted into cash.
Liquid Assets
Assets that cannot be quickly converted into cash.
Illiquid assets