cash flow
what is the definition of cash?
all cash in the business accounts, including everything that is in checking, savings, and short-term investment accounts.
What is an income statement?
summarizes income and expenses for a fixed period of time.
What is collateral?
something of value pledged as security for repayment of a loan.
What is a cash flow analysis statement?
shows how much cash came into the business, where it came from, and the cash that went out, and where, over a given period of time.
what is return on investment mean?
(ROI) is a financial metric that measures the profitability of an investment relative to its cost.
What is factoring?
where your business sells accounts receivable to another company at a discount to raise cash.
What is a balance sheet?
the snapshot of what your business has and what you owe at a given point in time.
What does account receivable mean?
the total amount of income to be received from outside parties.
What is a chart of accounts?
an index of all the financial accounts in your company.Your chart of accounts lists each account for the business and categorizes them according to the financial statements where they are recorded.
What is Equity capital?
is the funds a company raises by selling ownership shares to investors, representing partial ownership without repayment obligations.
What is an invoice?
a list of goods sent or services provided, with a statement of the sum due for these; a bill
What does return on equity mean?
(ROE) measures a company’s profitability relative to shareholders’ equity, showing how efficiently equity capital is converted into net income.
what is debt capital?
is the money a company borrows from lenders or investors, which must be repaid with interest, without giving up ownership of the business.
What is a liquid asset?
assets that can be quickly converted into cash with minimal loss of value, such as cash, bank balances, and marketable securities.
What is a fixed asset?
are long‑term, tangible (or sometimes intangible) assets that a company owns and uses in its operations to generate revenue, rather than for resale. They are typically recorded on the balance sheet under noncurrent assets as part of property, plant, and equipment (PPE)
what is a Finiancial ratio?
are quantitative measures derived from a company’s financial statements that compare two or more figures to assess its performance, financial health, and efficiency. Corporate Finance Institute +1 .They are widely used by investors, analysts, and managers to evaluate profitability, liquidity, leverage, operational efficiency, and market valuation.
What is line of credit
a preset borrowing limit that can be used at any time.
What is an illiquid asset
Illiquid assets are investments that cannot be quickly converted into cash without a significant loss in value.