| A | B |
|---|
| Assets | Things of economic value owned by a business. |
| Accounting Equation | Assets minus Liabilities equals Equity |
| Balance Sheet | A financial report that summarises what the business owes and owns on a specific date. |
| Liabilities | Money owed by a business to people other than the owners of the business. |
| Equity | Money in the business that "is owed to" the business owners. |
| Break-Even Point | When sales equal costs and the business has made neither a profit or a loss. |
| Cash Flow | Money coming into a business (from sales and other sources), and money going out of a business. |
| Creditor | Someone to whom your business owes money. |
| Debtor | Someone who owes your business money. |
| Current Assets | Cash and assets that can be easily turned into cash (cash in the bank, stock on hand, or what debtors owe your business). |
| Debt Capital | Funds lent to the business by external sources. |
| Drawings | Money taken out of the business by the owner/s. |
| Equity Capital | Money invested in a business by it's owners. |
| Fixed Assets | Things a business has bought for their long-term use (like land, buildings, vehicles) |
| Investment | The use of money to make more money. |
| Liquidity | Having enough cash and other current assets to finance the day to day operations of a business. |
| Start-Up Costs | All of the costs of starting up a new business. |
| Working Capital | The money needed to run a business on a day to day basis. |
| Working Capital Cycle | The length of time from when a business first spends money on goods or services, until the time when payment is received for them. |
| Medium-Term Loan | A loan that has to be repaid within 1-5 years. |
