Credit limit – a dollar amount that you cannot exceed on a credit card or the maximum lending amount offered for a loan.A creditor is also anyone who you owe money to, such as a lender or supplier. Creditor – a person or business that allows you to purchase a good or service with an agreement to pay at a later date.This could be an account with a supplier, a store credit card or a bank credit card. Credit – a lending term for when a customer purchases a good or service with an agreement to pay at a later date.Cost of goods sold – the total direct costs of producing a good or delivering a service.Contingent liability – a liability where payment is made only if a particular event or circumstance occurs.Commercial bills typically require some sort of security and suit short-term funding needs such as inventory. Commercial bill (also known as a bill of exchange) – a form of commercial loan on an interest only basis, or interest reducing basis.Chattel mortgages require regular ongoing payments and typically provide the option of reducing the payments through the use of a final 'balloon' payment. Chattel mortgage – similar to a hire-purchase agreement although the business owns the asset from the start.Each account represents a type of transaction such as asset, liability, owner's equity, income, and expense. Chart of accounts – an index of the accounts a business will use to classify transactions.Cash outgoing – money that is flowing out of the business.Cash incoming – money that is flowing into the business.Cash flow – the measure of actual cash flowing in and out of a business.Cash book – a daily record of all cash, credit or cheque transactions received or paid out by a business.Cash accounting – an accounting system that records transactions at the time you actually receive money payment.Cash – includes all money available on demand, including bank notes and coins, petty cash, certain cheques, and money in savings or debit accounts.Capital growth – an increase in the value of an asset.Capital gain – the amount gained when an asset sells above its original purchase price.Capital cost – a one-off substantial purchase of physical items such as plant, equipment, building or land.Capital – wealth in the form of money or property owned by a business.Budget– a listing of planned revenue and expenditure for a given period.Break-even point – the exact point when a business's income equals its expenses.Bootstrapping – where a business funds its growth purely through personal finances and revenue from the business.Bookkeeping– the process of recording the financial transactions of a business.Bill of sale – a legal document for the purchase of property or other assets that details the purchase, where it took place, and for how much.Benchmarking – the process of comparing your business to similar businesses in your industry.Benchmark – a set of conditions against which you can measure a product or business.Bankruptcy– a process where an individual is legally bankrupt and an appointed trustee manages their assets and financial affairs.Bankrupt – an individual is bankrupt when they cannot pay their debts and aren't able to reach an agreement with their creditors.Bank reconciliation – a cross-check that ensures the amounts in your cashbook match the relevant bank statements. Loans with a larger final 'balloon payment' have lower regular repayments over the term of the loan.
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