Small Business

Small Business terms

1. Accounts Payable An account in the general ledger representing the amount owed by the business to its creditors on open purchased of goods and/or services.
2. Accounts Receivable An account in the general ledger representing the amount due the business from its customers for goods and/or services sold on credit.
3. Amortization The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity.
4. Assets What a firm or individual owns.
5. Balance Sheet A financial statement showing the nature and amount of a company's assets, liabilities and shareholders' equity.
6. Bank Reconciliation A formal comparison of the balance in the checking account as shown on the bank statement with the balance of the cash account in the general ledger, at a…
7. Cash Flow Cash flow is a measure of changes in a company's cash account during an accounting period, specifically its cash income minus the cash payments it makes.
8. Corporation A legal entity created under the laws of a state to carry on some business or other authorized activity.
9. Depreciation The act of lowering an item´s value due to use or wear and tear.
10. Equity Another word for "stock." It represents an ownership interest by shareholders in a corporation.
11. Financing Borrowing money to buy something.
12. Hawaii Capital Loan Program (HCLP) Authorized by state law, this loan program is administered by the State Department of Business, Economic Development & Tourism to assist small businesses…
13. Investment Company A corporation or trust whose primary purpose is to invest the funds of its shareholders.
14. Lease A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent).
15. Liablities The sum of debts or obligations of a business. Normally, the liabilities appear on the credit side of a balance sheet.
16. Market Traditionally, a securities market was a place - such as the New York Stock Exchange (NYSE) - where members met to buy and sell securities.
17. Marketing Group of related business activities aimed at satisfying the demand for goods and services.
18. Mortgage A debt instrument used in a real estate transaction where the property is the collateral for the loan.
19. Net Worth A corporation's net worth is the retained earnings, or the amount left after dividends are paid, plus the money in its capital accounts, minus all of its…
20. Obligations Any kind of indebtedness; an encubance or commitment. Proprietorship (See: Sole proprietorship)
21. Partnership An agreement between two or more entities to go into business or invest. See also "general partnership;" "limited partnership;" "joint venture."
22. Ratio Denotes the relationship of items within and between comparisons of balance sheet items with profit-and-loss items; operating ratios are those derived…
23. Return on Investments (ROI) In general, a concept used in business planning to determine the profit earned in relation to the value of the capital required to prduce the profit.
24. SBA Guaranteed Loan Guaranteed loans are made by private lenders and then guaranteed by the SBA. The SBA's share may not exceed $750,000.
25. SBIC (See: Investment Company)
26. Services Corps of Retired Executives (SCORE) Retired successful business persons who volunteer to render assistance in counseling and guiding struggling independent businesses.
27. Sole Proprietorship A business entity privately owned by a single individual.
28. Subchapter "S" Corporation A private corporation of 35 or fewer stockholders who pay personal income rather than corporate tax on net profits.