Accounting terminology

Asset 

someting the business owns such as a building, car or inventories.

Non-current Asset

something the business owns for more that one year such as a building. 

Current Asset

Something the business owns for less than one year for example inventories. 

Trade Receivables 

someone who owes the busienss money

Trade Payables

someone the business owes monet to such as their supplier.

Current liability

something the business owes for less than one year such as a trade payable.

Non-current Liability

Something the business owes for more than one year such as a loan. 

Drawings

money or stock taken out of the business by th owner for their own use.

Profit

Sales (revenue), less expenses 

Prepayment 

An expense paid in advance

(part of next year’s or next month’s)

Accruals

An expense that has not been paid (some of this years)