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Finance (Financial markets (The bond market(debt market) (A bond is a debt…
Finance
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Business accounting
The Balance Sheet
The form of record: company's assets on the one side and the liabilities on the other.
Assets include everything of measurable value owned by the business (fixed, tangible, intangible, goodwill).
The Income Statement
Profit-and-loss statement shows how much a business has made or lost over a period of time. It illustrates how much money a company brought in(revenues), how much it spent(expenses), and the difference between the two.
The Cash Flow Statement
Cash flow refers to the amount of money coming into and going out of a firm. It shows how much actual money the company has generated over a specified period of time and how the company has performed in managing inflows and outflows of cash.
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Business loans
Short-term
The amount borrowed must be paid within one year. To finance the everyday costs of doing business (payrolls, raw materials, merchandise.
Types of short-term financing: trade credit, loans from financial institutions, loans from investors.
Long-term
Loans mature(come due) in more than a year. To purchase equipment, buildings, high-cost items.
Sources of long-term financing: retained earnings, long-term loans, the sale of stock.