Financial Concepts Vocabulary Review

Something of value

• assets

• liability

• net income

• inventory

Answer explanation

assets can be something big like a house or something small like jewelry

Money earned when something is sold

• assets

• maturity

• commissions

• profit

A person or business with a strong credit score and the financial resources that make it likely they will be able to repay the loan

• supplier

• credit-worthy

• angel investors

• guarantor

An obligation you have to pay someone else money

• online credit

• cost of goods sold

• credit

• liability

Answer explanation

also called a debt or a loan

Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding

• own "free and clear"

• liquid assets

• lien

• capitol or equity

Answer explanation

A company or individual "has liquidity" if they have lots of liquid assets

the date a loan (or debt or liability) is repaid in full

• principal

• contribution margin

• fiscal year

• maturity

Answer explanation

The maturity of your car loan is 5 years from the day you buy your car - 5 years from now that the debt needs to be completely repaid

Revenues after costs

(select all that apply)

• net income

• profit

• principal

• shareholder

An individual or company that owns shares in a company

• commissions

• stocks

• shareholder

• angel investors

Money owed by a company to a supplier

• account payable

• account receivable

• online credit

• bank loan

Money owed by a customer to a company

• account payable

• account receivable

• contribution margin

• unsecured debt