Match the Definiton
A document sent to a customer requesting payment for goods or services
Invoice
A business compares profits to expenses to determine performance
Financial Ratios
Measures how much profit is earned from an investment.
Return on Investment
Long-term property or equipment owned by a company.
Fixed Assets
TRUE OR FALSE: "Illiquid assets are assets that can easily be turned into cash quickly."
False
A financial statement that shows a company’s assets, liabilities, and equity
Balance Sheet
A company borrows money from a bank when needed up to a certain limit
Line of Credit
Measures how effectively a company uses shareholders’ investments.
Return on Equity
Assets that can quickly be converted into cash.
Liquid Assets
What is a list of all company accounts called?
Chart of Accounts
Money invested into a business by owners or shareholders
Equity Capital
A borrower offers property to guarantee a loan
Collateral
A complete list of all accounts used by a business.
Chart of Accounts
Assets that cannot easily be converted into cash.
Illiquid Assets
TRUE OR FALSE: Equity capital comes from owners or investors.
True
Borrowed money that must be repaid with interest
Debt Capital
A company sells unpaid invoices to receive immediate cash.
Factoring
Money a company has available immediately.
Cash
A company truck, machinery, and buildings are examples of this type of asset.
Fixed Assets
TRUE OR FALSE: A balance sheet shows a company’s profit over time.
False
A financial report showing revenues, expenses, and profit over a period of time
Income Statement
A business tracks money moving in and out to monitor financial health.
Cash Flow Analysis Statement
Money customers owe to a business.
Accounts Receivable
Savings accounts and cash are examples of this type of asset.
Liquid Assets
TRUE OR FALSE: Return on equity measures how well a company uses shareholder investments.
True