Definition of Terms: Balance Sheet - is a summary of the financial balances of a sole proprietorship, a business partnership, a corporation or other business

organization, such as an LLC or an LLP. Assets - are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Current Assets - Current assets are cash and other assets expected to be converted to cash, gold, or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business. Cash and Cash Equivalent - it is the most liquid asset, which includes currency, deposit accounts, and negotiable instruments (e.g., money orders, cheque, bank drafts). Receivables - may refer to the amount due from individuals and companies. Receivables are claims that are expected to be collected in cash. Non-Current Assets also known as Fixed Assets or as Property, Plant & Equipment, is a term used in accounting for assets and property which cannot easily be converted into cash. Liability - is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. Current Liability - these liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payables, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment). Long-Term Liability - these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pension obligations, and long-term product warranties.

Accounts Payable - is the amount owed for the purchase of goods or services at a specific date. General Fund Balance or Fund Accounting - is an accounting system emphasizing accountability rather than profitability, used by non-profit organizations and governments. In this system, a fund is a self-balancing set of accounts, segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations. Revenue - is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. Non-Stock Organization - is a corporation that does not have owners represented by shares of stock. a non-stock corporation typically has members, who are the functional equivalent of stockholders in a stock corporation (they have the right to vote, etc.) Non-stock corporations may also choose to have no members. Non-Profit Organization - (abbreviated as NPO) is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals rather than to distribute them as profit or dividends. Expenses - or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs. Depreciation - refers to the decrease in value of assets.

Accumulated Depreciation - Accumulated depreciation is known as a contra account, because it separately shows a negative amount that is directly associated with another account. Showing accumulated depreciation separately on the balance sheet has the effect of preserving the historical cost of assets on the balance sheet. Cash Flow - is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Working Capital - (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Positive working capital is required to ensure that a firm is

able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. Statement of Operation or Income Statement - is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line"). It displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes.[1] The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.