My AE Prep (Module 2) Flashcards
What is Cash Flow?
Money coming in and out of the business. (Payments from clients & expenses, for examples)
What is a Profit-Loss Statement?
A summary that shows how much money came into the business vs out.
What is a Balance Sheet?
A statement of the financial position of a business which states the assets, liabilities, and capital at a particular point in time.
What is the Break-Even Rate
How much revenue is needed just to cover expenses
What are accounts receivable (A/R)?
Money owed to the company by its clients, whether they have been invoiced yet or not.
What are accounts payable (A/P)?
Money that a company owes to others… such as rent, leases, loans, or credit
What is Equity?
The ownership interests of a firm, including the percentage of ownership of each principle in the firm
