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Entrepreneurship Final

Terms in this set (28)

income statement
a financial report the measures the financial performance of your business on a monthly or annual basis
balance sheet
a financial statement that shows what the company owes, what it owns, including the shareholder's stake, at a particular point in time
cash flow statement
a financial report that details the inflows and outflows of cash for a company over a set period of time
backlog
orders that have been received but not delivered to the customer
operating expenses
the expenditures that a company makes to generate income
operating profit
the amount left over from revenue once all costs and expenses are subtracted
interest expenses
the extent of the company's debt burden as well as representing any interest owed on borrowed money
net income
indicates what is left after all costs, expenses, and taxes have been paid
current assets
cash and other assets that can be converted into cash within a year
accounts receivable
money owed to the company for goods or services provided and billed to a customer
prepaid expenses
the payments the company has already made for services not yet received
Goodwill
the price paid for an asset in excess of its book value.
intangible assets
the value of patents, software programs, copyrights
long-term investments
assets that are more than one year old and are carried on the balance sheet at cost or book value with no appreciation
liabilities
economic obligations of the company such as money owed to lenders, suppliers, and employees
current liabilities
bills that must be paid within one year of the date of the balance sheet
accounts payable
money owed by a business to its suppliers
accrued expenses
costs incurred by the company for which no payment has been made
short-term debt
the portion of long-term debt that must be paid within a year
other current liabilities
Short - term liabilities that do not fall into a specific category, such as sales tax, income tax, and so forth.
long-term debt
obligation for debt that is due to be repaid in more than 12 months
shareholder equity
The money that has been invested in the business plus the cumulative net profits and losses the company has generated
retained earnings
the cumulative amount of profit retained by the company and not paid out in the form of dividends to owners
capital stock
the original amount the owner's paid into the company plus any additional paid-in capital to purchase stock in the company
Cash conversion cycle
the number of days a a company's cash is tied up in the production and sales process
DSO
a measure of the number of days that it takes to collect on accounts receivable
DOI
a measure of the average number of days it takes to sell the entire inventory of a company
DPO
a measure of the number of days it takes you to pay your bills
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