Entrepreneurship - Ch 11 Financial Statements
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17 terms
Terms | Definitions |
|---|---|
 Burn Rate | The rate at which your company will need to spend capital to cover overhead costs before generating a positive cash flow. |
| Calendar Year | An accounting period that extends from January 1 to December 31. |
| Cash Flow | the difference between cash coming in and cash going out of a business |
| Cash Flow Statement | shows actual inflows and outflows of cash or cash equivalents. |
| Cyclical | occurs at intervals |
| Fiscal Year | any accounting period of 12 months |
| Income Statement | a financial document that shows how much money (revenues) came in and how much money (expenses) was paid out |
| Accounts Payable | the amount of money owed, or payable, to a business's creditors |
| Accounts Receivable | The total amount of money owed to a business. |
| Asset | anything of value that is owned |
| Balance Sheet | a financial statement that reports assets, liabilities, and owner's equity on a specific date |
| Current Assets | Items that can or will be converted into cash within one year. |
| Current Liabilities | liabilities due within a short time, usually within a year |
| Liability | an obligation to pay money to another party |
| Long-Term Assets | assets that are expected to be used in business operations for longer than one year |
| Long-Term Liabilities | liabilities owed for more than a year |
| Owner's Equity | the amount remaining after the value of all liabilities is subtracted from the value of all assets |
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