Level 1 Finance

3. – Costs incurred in the process of earning revenue.
6. – Putting money into something (e.g. stocks, real estate) with the expectation of a return.
10. – The possibility of losing money on an investment or financial decision.
11. – How quickly and easily an asset can be converted into cash.
12. – A financial plan outlining expected income and expenses over a set period.
14. – Money or assets available to start or grow a business.
15. – Anything of value owned by an individual or business (e.g. cash, property, investments).

1. – The ability to borrow money or access goods/services with the promise to pay later.
2. – Income earned from business activities, before expenses.
4. – The original amount of money borrowed or invested, excluding interest.
5. (or Net Income) – What’s left after subtracting expenses from revenue.
7. – The value of ownership in an asset after subtracting liabilities (e.g. home value minus mortgage).
8. – Something owed, like loans or debts.
9. – The cost of borrowing money or the earnings from lending money.
13. – An accounting entry that decreases assets or increases liabilities/expenses.