Vocab
Invoice definition
What is a formal document that itemizes and records a transaction between a vendor and a buyer
Financial Ratios
What are calculation that express the relationship between two financial statement figures, providing insights into a company's performance, profitability, and overall financial health
What is a calculation of the monetary value of an investment versus its cost
Fixed assets
What is a tangible long-term asset owned by a company and used in its operations for more than one year
Balance Sheet
What is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period
Line of credit
What is a pre-approved loan amount that allows a borrower to access funds as needed, up to a set limit
Return on equity
What is a financial ratio that measures how efficiently a company uses its equity to generate profits
Liquid assets
What is an asset that can be easily and quickly converted into catch
Equity Capital
What is the funds contributed by the owners of a business, typically through the sale of stock, or the capital that is free of debt
Collateral
What is an asset pledged by a borrower to a lender as security for a loan
Chart of accounts
What is an index of all of the financial accounts in a company's general ledger
Debt capital
What is funding a business through borrowed money, typically in the form of loand or bonds, which must be repaid with interest
Factoring
What is a financing method where a company sells its unpaid invoiced to a third-party financing company for immediate cash
Cash
What is a physical currency and readily available
Income statement
What is a profit and loss statement or statement of earnings
Cash flow analysis statement
What is a financial report that summarized a business's cash inflows and outflows over a specific period
Accounts receivable
What is the total amount of money a company is owed by its customers for goods or services that have been delivered but not yet paid for