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Entrepreneurship
Unit 4: Financial Management
| Question | Answer |
|---|---|
| Items of value owned by a business | Assets |
| A financial statement that lists what a business owns, what it owes, and how much it is worth at a particular point in time | Balance sheet |
| Volume of sales that must be made to cover all the expenses of a business | Break-even point |
| An accounting report that describes the cash that flows in and out of a business | Cash flow statement |
| A book in which one records the dates, amounts, and names of people to whom checks have been written | Check register |
| Property the borrower forfeits if he or she defaults on a loan | Collateral |
| The cost of the inventory a business sells during a particular period | Cost of goods sold |
| Money loaned to a business with the understanding that the money will be repaid, with interest, in a certain time period | Debt capital |
| Money invested in a business in return for a share in the business's profits | Equity capital |
| Fees that must be paid regardless of how much of a good or service is produced | Fixed costs |
| Used to record any kind of transaction | General journal |
| Used to post items that are recorded in journals; ledgers separate transactions by account, allowing business | General ledger |
| Profit before operating expenses are deducted | Gross profit |
| The dollar amount of all sales, including returns | Gross sales |
| A financial statement that shows a business's revenue, expense, and profit over a period of time, usually a year | Income statement |
| An amount charged for borrowing money | Interest |
| The stock of goods a business has for sale | Inventory |
| Accounting records of the business transactions made | Journals |
| Money owed to others | Liability |
| A measurement of the advantages of producing one additional unit of a good or service | Marginal Benefit |
| An amount deducted from the retail price to determine the sales price | Markdown |
| An amount added to the cost to determine the sales price | Mark-up |
| The amount remaining after costs of goods sold and operating expenses are subtracted from sales | Net profit before taxes |
| The dollar amount of all sales after returns have been subtracted | Net sales |
| The expenses necessary to operate a business | Operating expenses |
| The difference between assets and liabilities | Owner's equity |
| Involves taking a physical inventory of the merchandise | Periodic inventory method |
| Keeps track of inverntory levels on a daily basis, using stock cards or a computer | Perpetual inventory method |
| Amount of money borrowed in a loan | Principle |
| The percent that is the basis for interest earned or paid | Rate of interest |
| A predetermined level of inventory when new stock must be purchase | Reorder point |
| The dollar value of the goods and services a business gives to customers over a certain period of time | Sales |
| Number of years for which a loan is extended | Term |
| Costs that go up and down depending on the quantity of the good or service produced | Variable costs |
| Individuals or companies that make a profit investing in startup companies | Venture capitalists |
Created by:
myawn01