Chapter 3 Vocab

2. -the amount of money borrowed
5. - an asset promised by a business to a creditor if repayment of a loan isn’t completed
8. -an individual or an organization that provides funds to a business, with repayment of the funds and agreed-upon interest due at a future date
9. -the current value of an amount of money to be received at a future date based on a specified investment rate
12. -identifies the assets, liabilities, and equity of a business as of a specific date
14. -a projected financial statement for a specific future time period
15. -all of the things a business owns and uses as a part of business operations
16. -the difference in purchasing power of an amount of money at a future date
18. -the amount to which an amount of money will grow in a defined period of time at a specified investment rate
20. -differences between budgeted amounts and actual financial performance
21. -the general increase in the price of all goods and services over time
22. -a decline in the value of an asset as it ages
23. -those things that the business owes to others

1. -the cost of borrowing money, expressed as a percentage of the amount borrowed, usually over a period of one year
3. -shows how cash is used by a business during a specified time period
4. -the amount paid for the privilege of borrowing money
6. -budget that projects all income and expenses for the operations of a business for a specific future time period
7. -specific reports prepared according to accepted accounting standards that provide financial information about an enterprise
10. -examining financial performance over several periods of time to determine patterns
11. a plan to acquire and finance long-term assets of a business
13. -goals that establish direction for the financial plans of a business
17. -provides a view of the financial changes in a business that have occurred during a specific period of time
19. -the total value that all owners and investors have in the firm