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Entrep > 2 > Flashcards

2 Flashcards

1
Q

is a document
that brings together the key
elements of a business that
include details about the products
and services, the cost, sales and
expected profits.

A

business plan

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2
Q

Blue Print

A

Business plan

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3
Q

ACCOUNTING EQUATION

A

Asset=Liability+Equity

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4
Q

are anything valuable that your company owns, whether it’s equipment, land, buildings, or intellectual property.

A

Assets

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5
Q

“How much do I have?“
“If it has value, and you own it.

A

Asset

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6
Q

Examples of Asset

A

CASH, ACCOUNT RECEIVABLE, INVENTORY, PROPERTY AND EQUIPMENT

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7
Q

ash and anything that can be converted into cash within a year (like inventory, for example).

A

Current Asset

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8
Q

Things like land, trademarks, and the value of your “brand.”

A

Fixed Asset

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9
Q

physical assets or property owned by a company, such as computer equipment, land, vehicles, machinery, furniture, inventory and securities.

A

Tangible Asset

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10
Q

don’t physically exist, yet they have a monetary value since they represent potential revenue.

A

Intangible Asset

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11
Q

A type of _ _ could be a copyright to a song. The record company that owns the copyright would get paid a royalty each time the song is played.

A

intangible asset

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12
Q

Examples of Intangible Asset

A

Goodwill, Brand Recognition, Patents, Trademarks and Trade Names and Customer Lists.

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13
Q

is an obligation of a company that results in the company’s future sacrifices of economic benefits to other entities or businesses.

A

Liabilities

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14
Q

A _ , like debt, can be an alternative to equity as a source of a company’s financing.

A

Liability

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15
Q

When you look at your accounting software or spreadsheets and look at your _ , you’re asking:
“How much do I owe?”

A

liabilities

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16
Q

Equation for Liabilities

A

Liabilities = Assets – Shareholder’s Equity

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17
Q

Examples of Liabilities

A

ACCOUNTS PAYABLE, BANK LOANS/ DEBT, MORTGAGE DEBT, MONEY OWED TO SUPPLIERS, WAGES AND TAXES

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18
Q

these are debts you owe within the next 12 months

A

Current Liabilities

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19
Q

Examples of Current Liabilities

A

Accounts Payable
Interest Payable
Income Tax Payable
Bank accounts overdrafts
Accrued Expenses
Deferred Revenue

20
Q

yet to be paid bills

A

Accounts Payable

21
Q

Interest expense that has already been incurred but not been paid

A

Interest Payable

22
Q

tax amount owed by company to the government

A

Income Tax Payable

23
Q

type of short- term loan, bank provides when a payment was done with insufficient account balance

A

Bank accounts overdrafts

24
Q

incurred but no supporting documents
Such as invoice, issued by the vendor

A

Accrued Expenses

25
Q

Generated when a company receives early payment for goods and/or services that have not been delivered or completed yet

A

Deferred Revenue

26
Q

are those that are due after more than one year.

A

Non- Current Liabilities

27
Q

Examples of Non- Current Liabilities

A

Bonds Payable
Notes Payable

28
Q

amount of outstanding bonds with a maturity of over one year issued by a company.

A

Bonds Payable

29
Q

amount of promissory notes with a maturity of over one year issued by a company.

A

Notes Payable

30
Q

If a company takes out a mortgage or a long- term debt, it records the value of the borrowed principal amount as a non-current liability on the balance sheet.

A

Mortgage payable/long-term debt

31
Q

are recognized as a liability when a company enters into a long-term rental agreement for property or equipment.

A

Leases

32
Q

is the amount of money that a company’s owner has put into it or owns. On a company’s balance sheet, the difference between its liabilities and assets shows how much equity the company has.

A

EQUITY

33
Q

Equity is also called _ _ or _ _ for privately held corporations, is the amount of money given to a company’s shareholders if all of its assets were sold and all of its debts were paid off.

A

shareholders’ equity or owners’ equity

34
Q

is important because it shows how much an investor has invested in a business based on how many shares they own. When you own stock in a company, you can make capital gains and get dividends.

A

Equity

35
Q

happens when the company’s debts are greater than its assets.

A

Negative Equity

36
Q

If this keeps happening, the company is said to be insolvent. Investors usually don’t want to put their money into companies with negative shareholder equity.

A

Negative Equity

37
Q

Equation of Equity

A

Owners’ equity = total assets - total liabilities

38
Q

KINDS OF EQUITY

A

A share of ownership in a company, shown by a stock or other security.

On a company’s balance sheet, this is the amount of money given by the owners or shareholders plus the amount of money that the company has kept (or losses). This is sometimes called “shareholder equity” or “equity of stockholders.”

The difference between the value of the securities in a margin account and the amount borrowed from the brokerage for margin trading.

The difference between how much a house is worth right now and how much is still owed on its mortgage.

39
Q

is the value that is given to a company’s shareholders in terms of finance and accounting.

A

Equity (in business)

40
Q

Equity in a Business:
The book value of _ is found by taking the difference between _ and _. Getting an accurate picture of _ and _. _ are legal obligations or debts that the company has to pay.

A

equity
equity and assets
assets and liabilities
Liabilities

41
Q

is the book value of the shareholder’s assets after the liabilities are removed.

A

Equity in a balance sheet

42
Q

is an important measure to ascertain the value of the shareholder’s funds. When combined with other factors, it gives an idea of the value of a company.

A

Equity (Importance)

43
Q

WHAT IS THE DIFFERENCE BETWEEN A CREDIT AND A DEBIT?

A

Debits increase the value of asset, expense and loss accounts.
Credits increase the value of liability, equity, revenue and gain accounts.

44
Q

increase the value of asset, expense and loss accounts.

A

Debits

45
Q

increase the value of liability, equity, revenue and gain accounts.

A

Credits

46
Q

Financial Statement
The _ _ of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea.

A

financial section

47
Q

The financial section is composed of four financial statements: _ _ _ and _
It also should include a brief explanation and analysis of these four statements.

A

the income statement, the cash flow projection, the balance sheet, and the statement of shareholders’ equity.

Entrep (4 decks)

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