Unit 41: Balance sheet 1

A Balance sheet

A statement that shows the value of a company's assets (= things of positive value) and its debts / a ‘snapshot photo’ of its assets and liabilities at the end of its financial year

An asset

Something that has value or the power to earn money for a business. These include current assets (zie onder)

Cash

Money in the form of notes and coins

Securities

Investments in other companies

Stocks of raw materials

A supply of any material, such as oil, cotton, or sugar in its natural condition, before it has been processed for use

Unfinished good

It is not made available to be sold since it is deemed to be incomplete. It may be used in the production process but is not sold to consumers.

Finished good

Good that has moved through the production process and is considered complete

Debtors

Money owed to the company by customers

Bad debts

Debts that cannot be recovered

Fixed asset

Physical or tangible assets a company owns and uses in its business operations to provide services and goods to its customers and help drive income.

Tangible asset

A physical asset whose value can be easily measured, such as cash, property, goods, or machinery

Physical asset

Are tangible assets and can be seen and touched, with a very identifiable physical presence. (ex. machinery, buildings, land)

Machinery

A group of large machines or the parts of a machine that make it work

Buildings

A structure with walls and a roof, such as a house or factory

Land

An area of ground, especially when used for a particular purpose such as farming or building

Intangible assets

Something that does not exist in a physical way, but which has value for a business, such as a brand name (ex. Goodwill)

Goodwill

The value that the company thinks it has as a functioning organization with its existing customers (ex. Good reputation)

Brands

A type of product made by a particular company and sold under a particular name

Item

Something that is part of a list or group of things

To carry (are carried)

To show

To wear (something) out

To use something so much that it is damaged and cannot be used any more, or to become damaged in this way

Obsolete

Not in use anymore

Depreciation (BrE) / amortization (AmE)

The amount by which something, such as a piece of equipment, is reduced in value in a company's financial accounts, over the period of time it has been in use. / The process of reducing a cost or total in regular small amounts

Charge

The amount of money that you have to pay for something, especially for an activity or service

Written down (value)

The value that a company gives an asset in its accounts after reducing it to allow for depreciation

Written off (something)

To accept that an amount of money has been lost or that a debt will not be paid

Book value

The amount that is shown as the value of an asset at a particular time

Market value

The amount that it could be sold for at that time (Ex. Land, buildings)