| A | B |
|---|
| Pro Forma Financial Statements | Financial statements bassed on projections. |
| Start-Up Costs | One time only expenses paid to establish a business |
| Revenue | Amount of cash coming in. |
| Operating Expenses | Expenses incurred by a business every month. |
| Income Statement | Financial statement that indicates how much money a business earns or loses during a particular period. |
| Profit & Loss Statement | Another name for an income statement. |
| Assets | Items of value owned by a business. |
| Liabilities | Items that a business owes to others. |
| Owner's Equity | Amount remaining after the value of all liabilities are subtracted from the value of all the assets. |
| Fixed Assets | Assets used for many years. |
| Current Assets | Cash, assets that can easily be converted into cash and items used up in normal business operations. |
| Accounts Receivable | Payments owed to you for merchandise or services. |
| Accounts Payable | Money you owe to a supplier for merchandise or services. |
| Depreciation | Lowering of value of an asset to reflect its current value. |
| Debt Capital | Money loaned to a business to be repaid with interest. |
| Collateral | Property that borrower forfeits if he or she defaults on the loan. |
| Unsecured Loans | Loan not guaranteed with property. |
| Venture Capitalists | Individuals and companies that make a living investing in new businesses. |
| Property Insurance | Insures against fire, robbery and storm damage as well as buildings and vehicles. |
| Casualty Insurance | Protects against lawsuits. |
| Life Insurance | Insurance paid in the event that a holder of the policy dies. |
| Workers' Compensation | Covers medical expenses incurred as the result of work-related injuries. |
