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| financial statements | reports that summarize financial data over a period of time |
| balance sheets | also known as a statement of financial position; is a financial statement that reports a businesses assets, liabilities, and capital on a specific date |
| liabilities | claims against assets; business debts |
| capital | also called net worth, owners equity, or stockholders equity; the value of the owners investment in the business after subtracting liabilities from assets |
| accounting equation | Assets=Liabilities+Capital |
| accounts receivable | the amount customers owe the business |
| accounts payable | the amount the company owes for purchases it made on credit |
| income statements | also known as a profit and loss statement; a financial statement that reports information about a company's revenues and expenses for a specific period |
| cost of goods sold | the amount the retailer pays the supplier for the merchandise it buys and sells |
| gross profit | the amount remaining after subtracting the cost of goods sold from revenue |
| net profit | the amount remaining after subtracting all expenses from revenue, except taxes |
| cash flow statement | a financial report that would primarily be used for internal control of cash |
| working capital | the difference between current assets and current liabilities |
| financial dashboard | a graphic designed to provide a quick iew of key financial performance indicators |
| certified public accountant (CPA) | a person who has met a state's education, experience, and examination requirements in accounting |
| audit | an examination of a companies financial records by an expert to verify their accuracy |
| consultant | sineine who gives professional advice or offers professional services |
| Small Business Administration | an agency of the federal gvernment that provides information, advice, and assistance in obtaining credit and other financial support for small business |
