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16 Cards in this Set
- Front
- Back
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assets |
things that one owns and completely pays for (car after all payments made) |
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current assets |
items quickly converted to cash or that will be sold within 12 months (cash, checking, savings, stocks, bonds) |
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non-current assets |
items that you own that have a useful life of more than one year (land machinery, breeding livestock) |
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liabilities |
things that you owe money to other people for, or debts (example: credit card) |
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current liabilities |
debts that are due to be paid this year (fertilizer and feed bills, tractor and building payments, part of the mortgage due THIS year) |
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non-current liabilities |
debts NOT due this year (mortgages NOT due this year but due after this year |
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net worth |
one's assets minus liabilities |
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inventory |
an itemized list of things owned by a business with the beginning value and depreciated value |
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depreciable inventory |
items that have a useful life of more than one year and lose value because of age, wear or becoming out of date because of technological advancements (tractor, computer, chainsaw) |
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non-depreciable inventory |
items that will be used or sold within a year (feed, supplies, land is also considered this because it does not lose value) |
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profit and loss statement |
a financial statement of a business that reports the profit made by the business or the losses incurred |
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cash receipts |
cash that is paid for services or mechandise |
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non-cash receipts |
payment for services in other ways than cash |
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invoice |
shows items and prices for things that have been bought from a certain business |
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debt-to-equity ratio |
used by banks and lending institutions to decide whether or not to lend money to specific people or businesses; formula is Total Liability/ Net Worth |
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labor, materials, travel |
other records businesses must keep |
