Financial statements
A financial report that shows a company’s assets, liabilities, and equity at a specific point in time.
Balance Sheet
Money invested in a company by owners or shareholders.
Equity Capital
Money a business currently has on hand.
Cash
A bill sent to a customer requesting payment for goods or services.
Invoice
A tool used to evaluate financial performance using numbers from financial statements.
Financial Ratios
A report that shows revenue and expenses over a period of time.
Income Statement
Money borrowed that must be repaid with interest.
Debt Capital
Money owed to the business by customers.
Accounts Receivable
A flexible loan that allows a business to borrow up to a certain limit.
Line of Credit
A measure of how much profit is made compared to the investment cost.
Return on Investment
A report that tracks how cash moves in and out of a business.
Cash Flow Analysis Statement
Long-term physical assets like buildings and equipment.
Fixed Assets
Property or assets pledged to secure a loan.
Collateral
A measure of profit compared to shareholders’ equity.
Return on Equity
Assets that can quickly be converted into cash.
Liquid Assets
Selling accounts receivable to a third party for immediate cash.
Factoring
Assets that cannot easily be converted into cash.
Illiquid Assets