Balance Sheet

Question 1

assets

Answer 1

resource with economic values that company owns / controls with the expectation that it will provide future benefit

Question 2

fixed / non-current assets

Answer 2

long-term investments; benefit not realized right now

Question 3

leasehold / freehold

Answer 3

property held by lease

Question 4

depreciation

Answer 4

allocating cost of assets over useful life

Question 5

amortization

Answer 5

technique to periodically lower the book value of an asset

Question 6

tangible asset

Answer 6

finite monetary value; usually of physical form

Question 7

intangible asset

Answer 7

theorized value rather than exchange value from transactions

Question 8

goodwill

Answer 8

intangible assets; value of brand name, customer base,…

Question 9

current assets

Answer 9

assets expected to be sold, consumed, utilized

Question 10

cash

Answer 10

legal tender used to exchange goods, debt or services

Question 11

stock (inventory)

Answer 11

goods / merchandise kept on premises of shop / warehouse

Question 12

accounts receivable (debtors)

Answer 12

money owed to company by debtors

Question 13

pre-paid expenses

Answer 13

future expenses that have been paid in advance

Question 14

liabilities

Answer 14

a thing for which someone is responsible (especially money)

Question 15

equity / owner’s capital

Answer 15

the value of shares issued by a company

Question 16

share capital

Answer 16

part of company’s capital that comes from issue of shares

Question 17

revenue reserve

Answer 17

created out of profits retained for purpose of expanding

Question 18

debt

Answer 18

state of owing money

Question 19

external liabilities

Answer 19

total amount of debts payable by business to outside

Question 20

loan capital

Answer 20

money required to run a business; raised from loans

Question 21

current liabilities

Answer 21

amounts due to be paid to creditors within 12 months

Question 22

accounts payable (creditors)

Answer 22

money owed by a company to creditors

Question 23

accrued expenses

Answer 23

obligation to pay for goods for which invoices have not yet been received

Question 24

overdraft

Answer 24

deficit in bank account caused by drawing more money than account holds

Question 25

dividends

Answer 25

sum of money paid regularly to shareholders out of its profits

Question 26

mortgage

Answer 26

loan in which property / real estate is used as collateral

Question 27

corporate bond

Answer 27

issued by corporation in order to raise financing; sold to investors