| A | B |
|---|
| Balance Sheet | Financial statement that tells an entrepreneur what his or her business is worth at a given time. |
| Capital Expenditures | Long-term commitments of large sums of money to buy new equipment or replace old equipment. |
| Cash Budget | A financial report showing a business’s projected and actual receipts/disbursements and the difference between the two. |
| Credit Bureau | Collection agencies which provide a person’s credit information to their member businesses. |
| Current Assets | Cash (or things that can be converted to cash); also, items that are used up by a business within a year. |
| Current Liabilities | Debts due within a year. |
| Fixed Costs | Expenses that don’t change with number of units produced. |
| Income Statement | A financial statement that shows how much a business has earned or lost during a year. |
| Pro Forma Income Statement | Financial statement which estimates the income of a business. |
| Ratio Analysis | Way of analyzing the financial condition of a business by comparing certain numbers from a balance sheet or income statement. |
| Return on Equity | The amount of money earned for each dollar invested by the owner of a business. |
| Trade Credit Agencies | Agencies that collect credit information on other businesses. |
| Variable Costs | Business expenses that change with each unit of product produced. |
