| A | B |
|---|
| Revenue | Income or the total amount of money a business brings in, usually from sales |
| Expenses | Total costs or money being paid out |
| Net profit | Amount of money left after all costs and expenses have been deducted from revenue |
| Start-up | Phase of financial planning that includes determining the amount of money needed to start & run the business until a profit is made |
| Operation | Phase of financial planning that includes determining whether they are making enough money on ongoing basis to operate |
| Expansion | Phase of financial planning that includes determining whether enough money is made to cover growth opportunities |
| Start-up Budget | Type of budget used by a new business or during expansion of a business until profit is made |
| Operating Budget | Type of budget used for ongoing business operations |
| Cash Budget | Type of budget used to estimate cash flow in and out of a business |
| Assets | Items of monetary value owned by a business (such as cash, land, buildings, machinery, vehicles) or amounts owed to them |
| Liabilities | Obligations a business has to pay money owed (such as taxes, loan payments, interest, bills) |
| Owner's Equity | Value of the owner's investment in the business |
| Balance Sheet | Shows what a business owns (assets), what a business owes (liabilities), and what a business is worth (owner's equity) at a particular point in time |
| Income Statement | Shows the revenue, expenses, and net profit/loss over a period of time |
| Current | Ratio that shows a business's ability to pay its debts in the near future |
| Debt to Equity | Ratio that shows how much the business relies on money borrowed from other sources compared to money generated from within the business |
| Return on Equity | Ratio that shows the rate of return the owners or stockholders are receiving on their investment |
| Net Income | Ratio that shows the amount of sales needed for each dollar of net income |
