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| Financial Plan | a set of documents that outline the essential financial facts about a new firm or venture |
| capital | Money supplied by investors, banks, or owners of a business |
| financial forecast | an estimate of a business's financial outlook for each of the next few years |
| budget | A plan specifying how money will be issued or spent during a particular period |
| accounting | The function of business that involves maintaining and auditing records; the sytematic process of recording and reporting the financial position of the company |
| property | Anthing of value that is owned or controlled by the business |
| assets | Property or other items of value owned by a business |
| current assets | Assets that are either used up or converted to cash during the normal cycle of a business |
| accounts receivable | The total amount of money owed to a business. |
| fixed assets | items of value that are held for more than one year |
| equity | Value of a piece of property less the amount still owed on the money borrowed to purchase it |
| liabilities | Creditors' claims to the assets of a business |
| accounts payable | The total amount a business owes to creditors |
| owner's equity | An owner's claims to the assets of a business |
| accounting equation | A concept that states that assets must always equal the sum of liabilities and owner's equity |
| financial statements | Documents summarizing the changes resulting from business transactions that occur during an accounting period |
| income statements | A report of the revenue, expenses, and net income or net loss for an accounting period |
| balance sheet | A report of the balances in all asset, liability, and owner's equity accounts at the end of an accounting period |
| cash flows | The amount of money that is available to a business at any given time |
