Business Finance Chapter 3 Vocabulary Quiz

A projected financial statement for a specific future time period.

• Assets

• Liabilities

• Financial Budget

The amount paid for the privilege of borrowing money.

• Interest

• Balance Sheet

• Inflation

Identifies the assets, liabilities, and equity of a business as of a specific date.

• Interest

• Balance Sheet

• Creditor

The difference in purchasing power of an amount of money at a future date.

• Time value of money

• Balance Sheet

• Interest Rate

The amount of money borrowed.

• Time value of money

• Interest

• Interest Rate

An asset promised by a business to a creditor if repayment of a loan isn't completed.

• Principal

• Interest

• Collateral

All of the things a business owns and uses as a part of business operations.

• Principal

• Assets

• Financial Statements

Goals that establish direction for th4e financial plans of a business.

• Business Financial Statements

• Business Financial Assets

• Business Financial Goals

The general increase in the price of all goods and services over time.

• Income Taxes

• Inflation

• Collateral

An individual or an organization that provides funds to a business with repayment of the funds and agreed-upon interest due at a future date.

• Tenant

• Landlord

• Creditor