| A | B |
|---|
| Accounts payable | amounts owed to vendors for merchandise purchased on credit |
| Accounts receivable | the amounts owed to a business by its credit customers |
| Balance sheet | a report that lists a company’s assists, liabilities, and owner’s equity at a specific point in time |
| Budget | detailed plans for the financial needs of individuals, families, and businesses |
| Current assets | cash and those items that can be readily converted to cash such as inventory and accounts receivable |
| Current liabilities | amount owed by the business that will be paid within a year |
| Debt to equity ratio | the company’s liabilities divided by the owners’ equity |
| Depreciation | the lowering of an asset's value to reflect its current worth |
| Discrepancies | differences between actual and budgeted performance |
| Expenses | costs of operating a businesses |
| Financial statements | reports that sum up the financial performance of a business |
| Income statement | a report of revenue, expenses, and net income or loss from operations for a specific period |
| Liabilities | what a company owes |
| Fixed assets | the assets with a lifespan of more than a year, such as land, buildings, equipment, and expensive technology |
| Long-term liabilities | business debts that will continue for longer than a year |
| Net income | the result of revenue being greater than expenses |
| Net loss | the result of expenses being greater than income |
| Owner’s equity | the value of the business after liabilities are subtracted from assets; the value of the owner’s investment in the business |
| Payroll | the financial record of employee compensations, deductions, and net pay |
| Payroll taxes | required federal and state payments for each employee, consisting of income taxes, social security, Medicare, and unemployment taxes |
| Profit | the amount of money available to the business after all costs and expenses have been paid |
| Revenue | all income that a business receives over a period of time |
| Collateral | property that the borrower forfeits if he or she defaults on the loan |
| Venture capitalist | An individual or a company that makes a living by investing in startup companies |
| Initial public offering (IPO) | the first time that the stock of a private company is offered to the public |
| Cash flow statement | an accounting report that describes the way cash flows into and out of your business over a period of time |
| Cost of goods sold | the cost of the inventory that a business sells during a particular period |
| Gross profit | the difference between revenue and cost and goods sold |
| secured loan | loans that are backed by collateral |
| unsecured loan | loans that are not guaranteed with collateral |
