Business Lingo
Define Invoice
a list of goods sent or services provided, with a statement of the sum due for these
Define financial ratios
Ratio analysis refers to a method of analyzing a company's liquidity, operational efficiency, and profitability
a performance measure used to evaluate the efficiency or profitability of an investment
Define fixed assets
assets which are purchased for long-term use and are not likely to be converted quickly into cash
Define balance sheet
a statement of the assets, liabilities, and capital of a business
Define line of credit
Define return on equity
a measure of financial performance calculated by dividing net income by shareholders' equity
Define liquid assets
an asset that can easily be converted into cash in a short amount of time.
Define equity capital
the value of the shares issued by a company.
Define collateral
something pledged as security for repayment of a loan, to be forfeited in the event of a default.
Define chart of accounts
a financial organizational tool that provides a complete listing, by category, of every account in the general ledger of a company
Define Illiquid asset
assets that cannot be quickly or easily converted into cash for their fair market value
Define debt capital
the capital that a business raises by taking out a loan
Define factoring
type of finance in which a business would sell its accounts receivable (invoices) to a third party
Define cash
money in coins or notes
Define income statement
An income statement is one of the three major financial statements that report a company's financial performance over a specific accounting period.
Define cash flow analysis statement
the figure that appears at the bottom of the cash flow statement
Define accounts receivable