Vocabulary Lab

Business Finance Terms That Win Points

Stop memorizing random words. Learn the terms judges expect, and use them in a natural, strategic way during roleplays.

Definitions Ratios Judge Language

Core Financial Vocabulary

Essential Terms

  • Assets: resources the business owns.
  • Liabilities: financial obligations the business owes.
  • Equity: owner value after liabilities are paid.
  • Cash Flow: movement of money in and out.
  • Revenue: total income before expenses.
  • Net Income: final profit after expenses and taxes.

High-Impact Ratios

  • Current Ratio = Current Assets / Current Liabilities
  • Debt-to-Equity = Total Liabilities / Total Equity
  • Gross Margin = (Revenue - COGS) / Revenue
  • Net Margin = Net Income / Revenue
  • ROI = Net Profit / Investment

Dropping one relevant ratio in your response instantly increases credibility.

Common Mistakes

  • Confusing profit with revenue.
  • Ignoring cash flow risk.
  • Sharing numbers without interpretation.
  • Making recommendations without financial support.

Judge-Ready Phrases

"Based on this break-even analysis, the proposal becomes profitable in month six."

"To reduce risk exposure, I recommend improving liquidity before expansion."

"The projected cash flow supports this decision without overleveraging the company."

"This option improves margin while maintaining sustainable operating costs."