1. Small Business 5.00 terms

2. Small Business 5.01 terms

3. 1. Accounts payable: Expenses that have been incurred but not yet paid. 2. Accounts receivable: Sales that have been made but not collected. 3. Assets: Items of value owned by the business. 4. Balance sheet: A financial statement that shows what a business owns, what it owes, and how much it is worth at a particular point in time.

4. Small Business 5.01 terms 5. Copyright: Legal right to exclusive publication, production, sale, or distribution of a literary or artistic work. 6. Cost of goods sold: The dollar amount a company pays to purchase a product for resale. 7. Current assets: Cash or items of monetary value that can easily be converted to cash and that are used up by a business within one year. 8. Current liabilities: Financial obligations that will be repaid within one year.

5. Small Business 5.01 terms 9. Expenses: All costs associated with running a business except for the cost of goods sold. 10. Fixed assets: Items of monetary value that are not easily converted into cash. 11. Fixed expenses: Business expenses that do not change month-to-month, but rather remain the same for a period of time. 12. Goodwill: Customers' approval and support of a business

6. Small Business 5.01 terms 13. Gross sales: The dollar amount of all sales, usually within a one-year period. 14. Income statement: A financial statement that shows the income, expenses, and profit/loss for the business over a period of time, usually a year. 15. Income taxes payable: Monies due to the government. 16. Intangible assets: Items of value that the business owns that cannot be seen or touched.

7. Small Business 5.01 terms 17. Inventory: The quantities of goods and materials on hand. 18. Liabilities: The debts owed by the business. 19. Long-term liabilities: Financial obligations that will take the business more than one year to repay. 20. Mortgage: A loan for purchasing a building and or land.

8. Small Business 5.01 terms 21. Net income: The amount of money left after all costs and expenses have been deducted. 22. Net sales: Gross sales minus returned goods. 23. Net worth: The monetary value of the business; assets minus liabilities. 24. Notes payable: Amounts owed for small loans

9. Small Business 5.01 terms 25. Patent: A legal document that gives an inventor the sole right to produce, use, and sell an invention. 26. Product positioning: Placing a product in a certain market to get a desired customer response. 27. Salaries payable: Wages owed to employees. 28. Supplies: Assets that are used up in business operations.

10. Small Business 5.01 terms 29. Taxes: Federal, state, and local assessments that are owed to the government. 30. Trademark: A name, symbol, or special mark that, when registered, can be used only by a certain business. 31. Variable expenses: Business expenses that may change from month to month.

11. Small Business 5.02 terms

12. 1. Break-even point: The point at which the money from product sales equals the costs of making and distributing the product. 2. Cash flow statement: A financial statement that shows the flow of money in and out of the business. 3. Current ratio: The comparison of current assets with current liabilities. 4. Economic outlook: Trends associated with the economy that can impact your business's sales.

13. Small Business 5.02 terms 5. Gross profit on sales: Net sales minus the cost of goods sold. 6. Market share: The percentage of a product/service that is sold in the total market for that product/service. 7. Repayment plan: A schedule or statement showing how and when the debt of a business is to be repaid. 8. Sales forecast: An estimate of sales for a specified period.

14. Small Business 5.02 terms 9. Sales ratio: An expression of any component of the income statement as a percentage of total sales. 10. Sales quota: A goal assigned to a sales person for a specified period.