Chapter 18 Flashcards Preview

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Flashcards in Chapter 18 Deck (10)
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0
Q

Start up capital

A

The money required to start your business

1
Q

Capital

A

The money you will need to establish a business, operate it for the first few months, and expand it once it stabilizes

2
Q

Start up costs

A

The costs of your fees involved in establishing your business

3
Q

Operating capital

A

The amount of capital needed to operate a business for the first few months or year

4
Q

Financial forecasting

A

The process of estimating a business’s operating capital

5
Q

Projected financial statements

A

Statements that predict the the financial position of a business in the months and years to come

6
Q

Fixed expenses

A

Expenses that remain the same regardless of business activity

7
Q

Variable expenses

A

Expenses that may change

8
Q

Reserve capital

A

Money that is set aside for unexpected costs or opportunities

9
Q

Chart of accounts

A

A list of all the general ledger accounts that a business will use