Balance Sheet Flashcards
Gross profit
Total sales - cost of goods sold
Operating costs
Expenses
Cost of goods sold
COGS; The cost of prosuc8ng the goods sold
Net profit
Aka final profit
Gross profit - expenses
Total assets
Monetary value of property beyond any amounts owed- everything a company owns, including liabilities
Current assets
Liquid assets, those easily converted to cash
Accounts receivable
Money owed to the company that will be fulfilled promptly
Accounts payable
Money owed by the company such as to vendors or wholesalers
Accumulated depreciation
Fixed asset
Total depreciation of an asset - original cost at the time of purchase
Current liabilities
Accounts payable and accrued expenses that must be paid within 12 months
Owners equity
Monetary value of property beyond debts, including retained earnings
Retained earnings
Income set aside by the company instead of being distributed to shareholders
