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Financial Terms

Basic Financial Terms

TermDefinition
Accounts Payable Line item on a Balance Sheet and it states the amount a company owes to vendors and suppliers.
Accounts Receivable Line item on a Balance Sheet and it states the and it states the amount a company is owed by customers/clients.
Assets Items that have future value, tangible and intangible, and are used by a business. Most important assets are usually cash, accounts receivable, inventory and fixed assets.
Assets are usually valued at the amount of money a company has spent to acquire the asset.
Balance Sheet: One of the 3 primary financial statements used by a business to indicate financial performance.
What is the Balance Sheet known as ? “snapshot” at a given point in time and always shows a business’ assets, liabilities and equity.
Cash: Line item on a Balance Sheet and it shows the amount held in currency or that which is readily available in bank deposits.
Created by: jtzuetrong
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