Capital & Credit
Money raised by selling ownership in the business.
What is equity capital?
A bill issued for goods or services provided, showing amount owed.
What is an invoice?
Physical currency or funds immediately available for use.
What is cash?
The percentage gain or loss made on an investment relative to its cost.
What is return on investment?
Money borrowed that must be repaid, often with interest.
What is debt capital?
A financial statement listing a company's assets, liabilities, and equity.
What is a balance sheet?
Money owed to a business by customers who purchased on credit.
What are accounts receivable?
A measure of financial performance calculated by dividing net income by shareholder equity.
What is return on equity?
A preapproved loan that can be drawn on as needed, up to a set limit.
What is a line of credit?
A report that shows revenue and expenses over a period, revealing profit or loss.
What is an income statement?
Long-term physical assets like buildings, land, or equipment used in operations.
What are fixed assets?
Numeric comparisons that evaluate aspects of a company’s financial performance, like profitability or liquidity.
What are financial ratios?
An asset pledged to secure a loan in case of default.
What is collateral?
A report showing the inflow and outflow of cash in a business.
What is a cash flow analysis statement?
Assets that can quickly and easily be converted to cash.
What are liquid assets?
The process of selling accounts receivable to a third party at a discount.
What is factoring?
A complete listing of all the financial accounts used in a company.
What is a chart of accounts?