| A | B |
|---|
| Cash Flow | difference between cash coming in and cash going out |
| Computer | tool for business people to use |
| Ledger | specialized accounting book or computer program that information is accumulated |
| Bookkeeping | is the recording of business transactions |
| Accounting | recording, classifying, summarizing and interpreting of financial events |
| Annual Report | yearly statement of the financial condition, progress, and expectations of an organization |
| Auditing | job of reviewing and evaluating the records used to prepare the company's financial statements |
| Balance Sheet | details what the company owns and owes on a certain day |
| Income statement | shows the revenue a firm earned selling its products compared to its selling costs over a specific period |
| Assets | economic resources of a company |
| Goodwill | represents teh value attached to factors such as a firm's reputation, location, and superior products |
| Net income or Net Loss | revenue left over after all costs and expenses, including taxes, are paid |
| Revenue | value of what is received for goods sold, services rendered, and other financial sources |
| Net sales | are gross sales minus returns, discounts, and allowances |
| Depreciation | systemic write-off of the cost of a tangible asset over its estimated useful life |
| Statement of Cash Flows | is the financial statement that reports cash receipts and disbursement related to the firm's three major activities; operations, investment, and financing |
| Liquidity | how fast an asset can be converted into cash |
| Liabilities | are what the business owes to others |
| Equity | value of things you own minus the amount of money you owe others |
| Owner's equity | amount of the business that belongs to the ownwers minus any liabilities owned by the business |
