BusFin Spring 2026 Unit 2 Vocabulary

A formal report that shows a business’s financial information.

• Balance Sheet
• Financial Statement
• Cash Flow Statement
• Income Statement

An asset expected to be converted into cash or used within one year.

• Current Asset
• Long-Term Asset
• Asset
• Cash Flow

The money a business earns from selling goods or services.

• Net Income
• Revenue
• Gross Profit
• Cash Flow

Costs required to run a business that are not directly tied to production.

• Cost of Goods Sold (COGS)
• Operating Expenses
• Variable Cost
• Fixed Cost

The direct costs of producing or purchasing the products a business sells.

• Operating Expenses
• Variable Cost
• Fixed Cost
• Cost of Goods Sold (COGS)

The final profit of a business after all expenses have been subtracted from revenue.

• Gross Profit
• Operating Income
• Revenue
• Net Income

The owner’s claim on the business after liabilities are subtracted from assets.

• Owner’s Equity
• Liability
• Asset
• Net Income

A financial statement that shows what a business owns, owes, and the owner’s equity at a specific point in time.

• Balance Sheet
• Income Statement
• Asset
• Owner’s Equity

Cash flows related to day-to-day business operations.

• Financing Activities
• Operating Activities
• Investing Activities
• Cash Flow

A cost that remains the same regardless of the level of production or sales.

• Fixed Cost
• Variable Cost
• Operating Expenses
• Cost of Goods Sold (COGS)