Basic Accounting Processes

Individuals or firms that invest money professionally

• bootstrapping

• accounting equation

• line of credit

• venture capitalist

Ownership in a business

• due diligence

• line of credit

• equity

•  accounting equation

Things of value banks can take if you don’t pay a loan back.

• collateral

• assets

• income statements

• financial statements

Creative techniques to get a business started

• leverage

• bootstrapping

• assets

• collateral

When a team of experts checks out a business.

• due diligence

• due process

• coaching

• scoping

An agreement by a bank to lend money.

• character

• line of credit

• assets

• cash flow

Things you own

• stuff

• items

• assets

• liabilities

Assets – Liabilities = Net/Owner’s Equity

• accounting problem

• income statement

• financial statement

• accounting equation

Sources of funding that help one to buy or start a business

• Personal savings

• loans or grants

• friends and family

• all of the above

Bankers judge the acceptance of a loan applicant based on

• Character

• capital

• Collateral

• all of the above