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| 1. Assets | a) Any year connected with finance, such as a company’s accounting period or a year for which budgets are made up. This is not necessarily January to December. |
| 2. Profit and loss account | b) A statement showing the inflows and outflows of cash and cash equivalents for a business over a financial period. |
| 3. Operating expenses and revenues | c) A company’s good reputation with existing customers. |
| 4. Financial year | d) The amounts owed by a business to suppliers (e.g. for raw materials). They are classed as current liabilities on the balance sheet. |
| 5. Balance sheet | e) An asset of a business intended for continuing use, such as equipment, machinery, buildings, land. |
| 6. Current assets | f) The measure of the cost or revalued amount of the economic benefits of a tangible fixed asset that have been consumed during an accounting period. This includes the wearing out, using up, or other reduction in the useful economic life of a tangible fixed asset. |
| 7. Liabilities | g) An asset that can neither be seen or touched. The most common of these are goodwill, and intellectual properties such as patents, trademarks and copyrights. |
| 8. Goodwill | h) The amounts owing to a business from customers for invoiced amounts. They are classed as current assets on the balance sheet. |
| 9. Fixed assets | i) The funds of an organization that have been provided by its owners, i.e. its total assets less its total liabilities. |
| 10. Accounts payable | j) A statement of the total assets and liabilities of an organization at a particular date, usually the last day of the accounting period. |
| 11. Cash-flow statement | k) A source of future economic benefits obtained or controlled as a result of past transactions or events. |
| 12. Intangible assets | l) The costs and revenues incurred or generated by an organization in the normal course of business, excluding any extraordinary items. |
| 13. Owner’s equity | m) A company’s debts to suppliers, lenders, the tax authorities. |
| 14. Accounts receivable | n) Money in the bank, investments that can easily be turned into money, money that customers owe, stocks of goods that are going to be sold. |
| 15. Depreciation | o) A statement of the profit (or loss) of an organization over a financial period. It explains what has happened since the previous balance sheet; the users of financial statements require information on the progress and future prospects of the company. |
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