Financial Documents & Reports
Invoice
A document sent by a seller to a buyer that lists goods or services provided and the amount due for payment.
Financial Ratios
Calculations that compare different figures from financial statements to evaluate performance (e.g., profitability, liquidity).
Equity Capital
Funds raised by selling ownership shares in a company.
Cash
Money available immediately, including currency and funds in checking accounts.
Collateral
Property or assets pledged by a borrower to secure a loan; if the borrower defaults, the lender can seize the collateral.
Balance Sheet
A financial statement showing a company’s assets, liabilities, and equity at a specific point in time.
Return on Investment (ROI)
A measure of profitability showing how much profit is made from an investment relative to its cost.
Debt Capital
Money borrowed by a business that must be repaid, usually with interest.
Accounts Receivable
Money owed to a business by its customers for goods or services already delivered.
Income Statement
A report showing a company’s revenues, expenses, and profits over a period of time.
Return on Equity (ROE)
A ratio showing how efficiently a company uses shareholders’ equity to generate profit.
Line of Credit
A flexible loan from a bank that allows a business to borrow up to a set limit as needed.
Fixed Assets
Long-term tangible assets such as buildings, equipment, or vehicles used in operations
Cash Flow Analysis Statement
A statement that tracks cash coming in (inflows) and going out (outflows) to show liquidity and solvency.
Factoring
Selling accounts receivable (invoices owed) to a third party at a discount to get immediate cash.
Liquid Assets
Assets that can be quickly and easily converted to cash without losing value.
Chart of Accounts
An organized list of all accounts used by a business to record transactions in its accounting system.
Illiquid Assets
Assets that cannot be quickly converted to cash without significant loss in value (e.g., real estate, specialized equipment).