Term 2 Glossary Flashcards
Assets
a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit
Balance Sheet
a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period
Cost of Sales (COS)
the cost involved in directly producing the goods or services that you actually sell
Creditors
individuals or entities that have lent money to another individual or entity
Current Assets
cash and other assets that are expected to be converted to cash within a year
Current Liabilities
a company’s short-term financial obligations that are due within one year or within a normal operating cycle
Dividends
a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves)
Debtors
a company or individual who owes money
Equity
the value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debts were paid off
Expenses
the cost incurred in or required for something
Final Accounts
those accounts that are prepared by a joint stock company at the end of a fiscal year
Finished Goods
goods that have completed the manufacturing process but have not yet been sold or distributed
Fixed Assets
assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment
Goodwill
an intangible asset that is associated with the purchase of one company by another
Gross Profit
the amount of money actually earned: Gross Profit = Total Revenue – Total Cost of Goods Sold
Illiquid Assets
assets or investments that cannot be quickly and easily converted into cash at the current fair market price
Intangible Assets
an asset that is not physical in nature and can be classified as either indefinite or definite
Intellectual Property Rights
the legal rights given to the inventor or creator to protect his invention or creation for a certain period of time
Liabilities
the legal debts a company owes to third-party creditors
Net Assets
the value of a company’s assets minus its liabilities
Non-current Assets
assets and property owned by a business that are not easily converted to cash within a year
Non-current Liabilities
financial obligations in a company’s balance sheet that are not expected to be paid within one year
Overdrafts
occurs when there isn’t enough money in an account to cover a transaction or withdrawal, but the bank allows the transaction anyway
Patents
an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem
