| A | B |
|---|
| liabilities | what you owe to others |
| limited amounts | banks will let businesses borrow THESE based on their credit history |
| money | Options for getting THIS are to use Trade credit, Transfer cash, or get a Bank loan |
| Cash | this could be bills & coins, funds in a checking account, or other money that can be made available quickly like money market mutual funds |
| 2/10 n/30 | this means you get a 2% discount if paid in 10 days and the full amount is due in 30 |
| report or rating | A report, created by the bank when you seek a loan, that assesses the risk of loaning money to a business can be called a credit _____________ |
| Days Payable | the formula for this is how much you owe by how much you typically buy per day |
| Interest | the fee paid to borrow money is which of the following |
| early | you must pay THIS in order to take advantage of the discount period |
| Accounts payable | Money that you owe others for goods or services they have provided |
| net worth | assets-liabilities |
| P x R x T | The formula for figuring simple interest |
| start up costs | Renting a location and utilities, Cost of signage, displays, and racks, Purchasing inventory |
| Cash flow | This statement is important in letting the business owner know if there will be enough cash to cover the business's projected expenses |
| financing | acceptable methods for doing this are:Your own money , Loans from banks, Loans from friends or family |
