Balance Sheet
Shows the assets, liabilities, and owner's equity at a given moment in time
Balance Sheet
Summarizes the revenues and expenses of a company over a period of time, and reflects the difference between the two as a profit or a loss
Income Statement
Money in the till or in the bank
Cash
Cash or other assets that can be converted into cash within one year
Current Assets
Money you owe that will ordinarily be paid within one year
Current Liabilities
In accounting, something of value in monetary terms
Assets
Cost of doing business other than those related to production
Expenses
Often called the language of business and is used to measure, record, report, and interpret the financial aspects of business
Accounting
Money that is owed to you from your customers
Accounts Receivable
Money that you owe to regular business creditors
Accounts Payable
Debts and accounts that are payable
Liabilities
Sales minus cost of goods or services sold
Gross Profit
Assets = Liabilities + Owners Equity
Accounting Equation
This is accounted for as raw materials, goods in process, and finished products
Inventory
Money owed that will not be repaid during the current year
Long-Term Liabilities
This is part of the assets that the owner has claims to after all liabilities are paid
Owners Equity
Gross Profit minus expenses
Net Profit
Profit made this year but not yet distributed
Earnings Year-to-Date
Ease with which assets can be converted into cash
Liquidity
Money owed to the government for taxes
Tax Liabilities
Your own money that was used to start the company
Original Investment
Inventory at the beginning of the accounting period, plus new inventory purchases, plus labor and other associated production costs, minus inventory at the end of the accounting period
Cost of Goods Sold
Things which accumulate either as assets or equities. Difference in revenue and expenses, not cash
Accrual
Patents, good will, logos, trademarks, and franchises
Intangible Assets
The process of gradually paying off a liability over a period of time
Amortization