Vocab quiz Flashcards
Business vocab
Globalization
The world connecting through trade, technology, and culture
Liability
Money or debts a person or business owes to others
Net income
The money left after paying all expenses (your profit)
capital
Money or resources used to start or grow a business
Collateral
Something valuable you promise to a lender in case you can’t pay back a loan
Equity
The value of ownership in a business or asset after debts are paid
Balance sheet
A document showing what a business owns (assets) and owes (liabilities) at a specific time.
credit
borrowed money you promise to pay back later, often with interest
inflation
When prices of goods go up
ROI
How much money you make from an investment compared to what you spent
EX: If you made $10,000 from a $1000 cost the ROI would be 0.9 or 90%
Break even point
when your income equals your costs, so you’re not losing or making money yet.
interest
Extra money you pay when you borrow money or earn when you save money
financial statement
a document that shows the money a business makes, spends, owes, and owns
asset
Anything valuable a business owns, like cash, equipment, or property
depreciation
The decrease in a value of something over time, like a car or equipment
audit
a review of financial records to make sure everything is accurate.
financial planning
making a plan for how to manage and use money wisely
loss
When a business spends more money than it earns
income statement
A report showing how much money a business made and spent during a specific time.
budget
A plan for how much money you will spend and save
cost of goods
The money spent to make or buy the products you sell
revenue
The total money a business earns from selling its products or services.
cash flow
The money moving in and out of a business
debt
Money you borrow and need to pay back
Amortization
spreading out loan payments over time until it’s fully paid.
profit
The money a business makes after paying all it’s costs
investment
Putting money into something to make more money later
