| A | B |
|---|
| Balance Sheet | Financial Photograph of financial status |
| Assets | Owns; What you own in a business |
| Liabilities | Owes; What you owe in a business |
| Owner's Equity | Amount of Ownership;Also called proprietorship or capital |
| Capital | Amount of Business Ownership; also called owner's equity or proprietorship |
| Sole Proprietorship | Single ownership of a business |
| Current Assets | Owned; due in less than a year |
| Fixed Assets | Owned; due in more than a year |
| Current Liabilities | Owed; due in less than a year |
| Long Term Liabilities | Owed; due in more than a year |
| Comparative Balance Sheet | Compare balance sheet in 2 or more time periods |
| Income Statement | Financial history over a period of time (activity) |
| Revenue | Money in |
| Expenses | Money out |
| Net Income | Revenue is greater than expenses |
| Net Loss | Expenses are greater than revenue |
| Cost of Goods Sold | value of merchandise sold |
| Gross Margin | Different between cost of goods sold and net sales |
| Partnership | 2 or more owners |
| Corporation | Legal entity of business ownership |
