Balance Sheet Flashcards
assets
resource with economic values that company owns / controls with the expectation that it will provide future benefit
fixed / non-current assets
long-term investments; benefit not realized right now
leasehold / freehold
property held by lease
depreciation
allocating cost of assets over useful life
amortization
technique to periodically lower the book value of an asset
tangible asset
finite monetary value; usually of physical form
intangible asset
theorized value rather than exchange value from transactions
goodwill
intangible assets; value of brand name, customer base,…
current assets
assets expected to be sold, consumed, utilized
cash
legal tender used to exchange goods, debt or services
stock (inventory)
goods / merchandise kept on premises of shop / warehouse
accounts receivable (debtors)
money owed to company by debtors
pre-paid expenses
future expenses that have been paid in advance
liabilities
a thing for which someone is responsible (especially money)
equity / owner’s capital
the value of shares issued by a company
share capital
part of company’s capital that comes from issue of shares
revenue reserve
created out of profits retained for purpose of expanding
debt
state of owing money
external liabilities
total amount of debts payable by business to outside
loan capital
money required to run a business; raised from loans
current liabilities
amounts due to be paid to creditors within 12 months
accounts payable (creditors)
money owed by a company to creditors
accrued expenses
obligation to pay for goods for which invoices have not yet been received
overdraft
deficit in bank account caused by drawing more money than account holds
