ESB Exam Study Guide Latest Update with Certified Solutions

ESB Exam Study Guide Latest Update with Certified Solutions Acquisition Cost ✔✔the cost of obtaining data that you don't have Contingency costs ✔✔amount of money included to cover potential events that are not specif ...

ESB Exam Study Guide Latest Update with Certified Solutions Acquisition Cost ✔✔the cost of obtaining data that you don't have Contingency costs ✔✔amount of money included to cover potential events that are not specifically accounted for in a cost estimate Variable Cost ✔✔a cost that rises or falls depending on how much is produced fixed costs ✔✔costs that do not vary with production or sales level pro forma ✔✔financial statement Small Business Administration (SBA) ✔✔government agency that helps small business owners develop business plans and obtain financing Limited Liability Company (LLC) ✔✔a form of business ownership that offers both limited liability to its owners and flexible tax treatment S cooperation ✔✔a small business entity that is created under state laws liquid assets ✔✔cash and items that can be quickly converted to cash Assets ✔✔resources owned by a business dividend ✔✔The portion of corporate profits paid out to stockholders liability ✔✔An amount owed by a business Net Income ✔✔the difference between total revenue and total expenses when total revenue is greater shareholder ✔✔Individual who owns part of a corporation account payable ✔✔money owed for products and services purchased on credit Accounts Receivable ✔✔Amounts to be received in the future due to the sale of goods or services Angel Investors ✔✔individuals who invest in start-up companies with high growth potential in exchange for a share of ownership Bonds ✔✔Certificates of debt that carry a promise to buy back the bonds at a higher price Capital/Equity ✔✔Funds contributed by investors to a business. capital expenditures ✔✔Expenditures on equipment the business will use for many years. equity capital ✔✔money that a business gets from its owners in order to operate fiscal year ✔✔A fiscal period consisting of 12 consecutive months. Crowdfunding ✔✔using social networking to appeal to potential investors Guarantor ✔✔a person who agrees to pay a debt if the primary debtor does not Income Statement Equation ✔✔Revenues - Expenses = Net Income Income Statement ✔✔A financial statement showing the revenue and expenses for a fiscal period Current Ratio ✔✔current assets divided by current liabilities Accounting Equation ✔✔Assets = Liabilities + Owner's Equity retained earnings ✔✔the amount of net income retained in the corporation Accounting ✔✔planning, recording, analyzing, and interpreting financial information bank credit ✔✔A statistic that measures the lending activity of commercial financial institutions Online Credit ✔✔Debt obtained from a number of online companies. Registered Agent ✔✔Someone hired by a business to serve as its official presence in the state beneficiary ✔✔one who receives benefits total revenue - total cost = ✔✔profit conflict of interest ✔✔a conflict between self-interest and professional obligation Corporate Social Responsibility ✔✔a business's concern for society's welfare intellectual property ✔✔A product of the intellect, such as an expressed idea or concept, that has commercial value. Notes Payable ✔✔Short-term or long-term liabilities that a business promises to repay by a certain date. lien ✔✔The right to take hold or sell the property of a debtor as security or payment for a debt, mortgage. commissions ✔✔incentive pay calculated as a percentage of sales Covered Loss ✔✔a loss that an insurance will reimburse a policyholder for in the event of a claim Contribution Margin ✔✔Sales - Variable Costs brokerage ✔✔The business of making sales and purchases for a commission; a broker. profit per unit ✔✔Unit price minus cost of goods sold. quarter ✔✔three months overhead ✔✔broad category of fixed costs that includes interest, rent, taxes, and executive salaries overdraft ✔✔A check written for more money than your account contains pledged ✔✔A legal agreement that an assets is part of a guarantee to a lender, when the lender can take possession of the assets and sell it to recover the funds owed by a borrower in the event the borrower is unable to make a required debt payment. secured debt ✔✔debt guaranteed by collateral Origination Fee ✔✔