The rate at which your company will need to spend capital to cover overhead costs before generating a positive cash flow.
An accounting period that extends from January 1 to December 31.
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.
occurs at intervals
any accounting period of 12 months
a financial document that shows how much money (revenues) came in and how much money (expenses) was paid out
the amount of money owed, or payable, to a business's creditors
The total amount of money owed to a business.
anything of value that is owned
a financial statement that reports assets, liabilities, and owner's equity on a specific date
Items that can or will be converted into cash within one year.
liabilities due within a short time, usually within a year
an obligation to pay money to another party
assets that are expected to be used in business operations for longer than one year
liabilities owed for more than a year
the amount remaining after the value of all liabilities is subtracted from the value of all assets