| No | Word | Definition |
| 1 | Financial Planning | The process of approximating the essential capital required and determining its competition. |
| 2 | Budget | A forecast of revenue, expenditure and profit. Majority of budgets are amended yearly. |
| 3 | Assets | Represents items that are owned or available to be used in the venture operations. |
| 4 | Expenses | The monetary costs that a business acquires during its operations to produce revenues |
| 5 | Revenue | The sum of money that a business in reality obtains during an explicit stage, together with mark downs and subtraction for returned stock |
| 6 | Pro Forma Income Statements |
Pro forma income statements are a vital tool for scheduling future business actions. A pro forma financial statement is based on firm postulations and projections |
| 7 | Pro forma balance sheet | Summarizes the projected assets, liabilities, and net worth of the new venture |
| No | Word | Definition |
| 8 | Pro forma cash flow | Projected cash available calculated from projected cash accumulations minus projected cash disbursements |
| 9 | Pro forma income | Projected net profit calculated from projected revenues minus projected costs and expenses. |
| 10 | Break-even | Volume of sales where the venture neither makes a profit nor incurs a loss. |
| 11 | Fixed Costs | Fixed costs are costs that are free of output. These remain steady right through the relevant range and are generally considered sunk for the relevant range. |
| 12 | Variable Costs | Costs that alter in ratio to sales are variable costs. General variable costs comprise raw materials, shipping and depletion. |
| 13 | Semi-Variable Costs | It is a cost that fluctuates with alteration in volume but, contrasting a variable cost, does not differ in direct percentage; also called mixed cost. In other words, this cost includes both a variable and fixed constituent. |