Entrepreneurship Chapt 11 vocabulary

January 1 through December 31

• income statement

• profit and loss statement

• calendar year

• fiscal year

any 12-month period you choose to treat as a year for accounting purposes

• income statement

• profit and loss statement

• calendar year

• fiscal year

shows a business’s income and expenses over a given time period and whether the business made a profit or took a loss

• income statement

• profit and loss statement

• calendar year

• fiscal year

the money received minus what is spent over a specified period of time

• burn rate

• cash flow statement

• cash flow

• cyclical

a financial document that records inflows and outflows of cash when they actually occur

• burn rate

• cash flow statement

• cash flow

• cyclical

sales that are based on the time of year

• burn rate

• cash flow statement

• cash flow

• cyclical

The rate at which a company spends cash to cover overhead costs without generating a positive cash flow is called

• burn rate

• cash flow statement

• cash flow

• cyclical

a financial statement that summarizes the assets and liabilities (debts) of a business. It shows how much a business is worth at a particular time

• balance sheet

• asset

• liability

• owner’s equity

Everything owned by the business that has a monetary value.

• balance sheet

• asset

• liability

• owner’s equity

Any outstanding bill or loan that must be repaid.

• balance sheet

• asset

• liability

• owner’s equity