Key Words: Financial Statements

1. Amount of Sales. The dollar amount of sales equals the price of the
product or service times the number of units sold or the amount of
service rendered.
2. Cost of goods sold. The cost of producing or purchasing the firm’s
products or services.
3. Operating expenses. Expenses relate to marketing and distributing
the product, general and administrative expenses, and depreciation
expenses.
4. Interest expense. Interest on the loan principal or borrowed money.
5. Taxes. Percentage of profits before taxes. or the taxable profits.
6. Product sales and installations. The actual sale and installation of
the product.
7. Working Capital. Another term being used for current assets –
namely: Cash, accounts receivables, and the inventory needed for
the day-to-day operations of the business.
8. Fixed assets – property, plant, and equipment.
9. Cash Budget. Is one of the primary tools that a small business owner
can use to manage cash flows.
10. Net Profit. Profit after tax.
11. Revenue. Gross income or gross sales.