Accounting Terms

Front 1

Assets

Back 1

property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

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Liabilities

Back 2

a thing for which someone is responsible, especially a debt or financial obligation.

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shareholders equity

Back 3

A firm's total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares.

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income statement

Back 4

A financial statement that measures a company's financial performance over a specific accounting period.

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cash flow statement

Back 5

is a financial statement that shows how changes in balance sheet accounts and income affect cash and cashequivalents, and breaks the analysis down to operating, investing and financing activities.

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account

Back 6

a record or statement of financial expenditure or receipts relating to a particular period or purpose.

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accountant

Back 7

a person whose job is to keep or inspect financial accounts.

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accounting period

Back 8

generally a quarter or a year and reflects all of the financial activity that occurred during that time.

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accounts payable

Back 9

money owed by a company to its creditors.

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accounts receivable

Back 10

money owed to a company by its debtors.

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appreciation

Back 11

an increase in the value of an asset over time. The increase can occur for a number of reasons including increased demand or weakening supply, or as a result of changes in inflation or interest rates.

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audit

Back 12

an official inspection of an individual's or organization's accounts, typically by an independent body.

Front 13

capital

Back 13

wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.