Financial Basic

3. overall movement of funds through your business each month, including income and expenses
6. things your company is responsible for by law
8. encompasses debts or obligations that your company must repay in over a year’s time.
10. include things that can be easily converted into cash.
12. total amount a business has earned or lost at the end of a specified accounting period, usually a month
13. are required for a business to complete its day-to-day functions
14. amount that clients owe to a business
15. assets that you can see and touch.
17. long-term assets or non-current assets
18. regularly generate more revenue from the sale of its product or service than it costs to make that product or service

1. not critical for a company to provide its product or service
2. opposite of tangible assets, and include any assets that are, well, not tangible.
4. analyze your company’s profits and losses
5. to determine long-term solvency , or their ability to pay their bills
7. subtracts your company’s total liabilities from its total assets in order to arrive at your company’s net worth.
9. immediate debts that must be repaid within one year.
11. any cost that is “ordinary and necessary” to run a business or trade
16. are the economic resources a business has, including everything your company owns that has some economic value