Terminology in Financial Statements

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  • Created by: libh105
  • Created on: 24-10-19 10:20
Assets
An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet and are bought or created to increase
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Fixed Assets
A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear
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Current Assets
A current asset is a company's cash and its other assets that are expected to be converted to cash within one year of the date appearing in the heading of the company's balance sheet. ... Current assets are also a key component of a company's working
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Liabilities
Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations. ... Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred rev
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Current Liabilities
Current liabilities are financial obligations of a business entity that are due and payable within a year. ... In other words, if a company operates a business cycle that extends beyond a year's time, a current liability for said company is defined a
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Long Term Liabilities
Long-term liabilities are financial obligations of a company that are due more than one year in the future. The current portion of long-term debt is listed separately to provide a more accurate view of a company's current liquidity and the company's
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Net Current Assets
Net current assets is the aggregate amount of all current assets, minus the aggregate amount of all current liabilities. There should be a positive amount of net current assets on hand, since this implies that there are sufficient current assets to p
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Retained Profits
Retained earnings are the net earnings after dividends that are available for reinvestment back into the company or to pay down debt. .The statement of retained earnings is one of the financial statements that publicly traded companies are require
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Creditor
In other words, the company owes money to its creditors and the amounts should be reported on the company's balance sheet as either a current liability or a non-current (or long-term) liability.
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Debtor
A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities – such as bonds – the debtor is referred to a
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Other cards in this set

Card 2

Front

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear

Back

Fixed Assets

Card 3

Front

A current asset is a company's cash and its other assets that are expected to be converted to cash within one year of the date appearing in the heading of the company's balance sheet. ... Current assets are also a key component of a company's working

Back

Preview of the back of card 3

Card 4

Front

Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations. ... Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred rev

Back

Preview of the back of card 4

Card 5

Front

Current liabilities are financial obligations of a business entity that are due and payable within a year. ... In other words, if a company operates a business cycle that extends beyond a year's time, a current liability for said company is defined a

Back

Preview of the back of card 5
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