Terminology

What are Assets?

Resources owned by a business that have economic value.

What are Liabilities?

Obligations or debts that a company owes to outside parties.

What is Equity?

The residual interest in the assets of a company after deducting liabilities.

What is Revenue?

Income generated from normal business operations.

What are Expenses?

Costs incurred in the process of generating revenue.

What is a Balance Sheet?

A financial statement that reports a company's assets, liabilities, and equity at a specific point in time.

What is a Income Statement?

A financial report that shows the company's revenue and expenses over a specific period.

What is Cash Flow?

The net amount of cash being transferred into and out of a business.

What is General Ledger?

A complete record of all financial transactions over the life of a company.

What are Financial Statements?

Formal records of the financial activities of a business, including balance sheets, income statements, and cash flow statements.