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Financial Statements
Statements concerning the business's financial status. These include: income statement, balance sheet, and cash flow statements, and may include other statements appropriate for your business.
Acceleration Clause
A clause (often in mortgages or other loans) where some action will occur ahead of schedule as a result of some other action. For example, an acceleration clause in a loan may mean that the full amount is due immediately if the debtor misses two monthly payments in a row.
Accounts Receivable
For accrual basis businesses, transactions not paid in cash create an account receivable, an unsecured promise to pay in the future.
Breakeven analysis
The point at which the business will neither make a profit nor lose money and where revenues equal expenses.
Undercapitalization
Undercapitalization failure by the borrower to produce the amount of capital that is necessary to finance a project.
Accountant's Opinion
If a independent certified public accountant is requested to audit a company's books, he will issue a opinion as to the condition of the financial statements. There are several degrees of opinion from clean to adverse.
Articles of Incorporation
Legal document filed with the state, which sets forth the purposes and regulations for a corporation. Each state may have different rules/requirements.
Accounting Rate of Return
A method of computing the profitability where the total cash inflow over the life of the project is reduced by expenses.
Accumulated Depreciation
The total depreciation taken on an asset since it was acquired.
Costs
Money obligated for goods and services received during a given period of time, regardless of when ordered or whether paid for.
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