balance sheet
Assets minus liabilities
A balance sheet is a financial statement showing what a company owns (assets), what it owes (liabilities), and the difference between them (equity) at a specific point in time.
The name comes from the fundamental equation: assets must equal liabilities plus equity—the two sides balance.
The auditor reviewed the balance sheet before approving the loan.
Profits kept by company
- shareholder equityOwners' residual claim
- common stockBasic corporate ownership units
- preferred stockPriority-claim corporate ownership
- capitalWealth used for investment
book value · net worth · treasury stock · dividends · reserves · equity stake · ownership interest
Financial record book
- financial statementFormal fiscal summary document
- bookkeepingRecording financial transactions systematically
- double-entryAccounting with paired entries
- general ledgerMaster accounting record
chart of accounts · reconciliation · journal · posting · audit trail · fiscal year · accrual · amortization
Ready spending funds
- accounts receivableDebts owed to business
- inventoryCatalog of held assets
- propertySomething owned or inherent
- equipmentTools for a task
investments · goodwill · patents · intangible assets · fixed assets · current assets · long-term investments · capital assets
State of monetary stability
- solvencyCapacity to pay debts
- liquidityConvertibility to cash
- net assetsHoldings minus obligations
- point in timeSpecific temporal location
Outstanding debts to suppliers
- debtMoney owed another
- loansBorrowed money arrangements
- bondsTies that unite
- mortgagesLoans secured by property
long-term debt · short-term debt · unearned income · financial obligations · overdrafts · accruals · provisions
retained earnings
Profits kept by company
- shareholder equityOwners' residual claim
- common stockBasic corporate ownership units
- preferred stockPriority-claim corporate ownership
capital · book value · net worth · treasury stock · dividends · reserves · equity stake · ownership interest
ledger
Financial record book
- financial statementFormal fiscal summary document
- bookkeepingRecording financial transactions systematically
- double-entryAccounting with paired entries
general ledger · chart of accounts · reconciliation · journal · posting · audit trail · fiscal year · accrual · amortization · depreciation
cash
Ready spending funds
- accounts receivableDebts owed to business
- inventoryCatalog of held assets
- propertySomething owned or inherent
equipment · investments · goodwill · patents · intangible assets · fixed assets · current assets · long-term investments · capital assets · financial assets
financial health
State of monetary stability
- solvencyCapacity to pay debts
- liquidityConvertibility to cash
- net assetsHoldings minus obligations
accounts payable
Outstanding debts to suppliers
mortgages · long-term debt · short-term debt · unearned income · financial obligations · overdrafts · accruals · provisions
- bankingbank, banks, ATM, ATMs, account
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- Accounting Softwareaccounting software, QuickBooks, general ledger, payroll software, Sage
- business reportsannual report, quarterly report, financial report, sales report, expense report
- financial documentsinvoice, receipt, check, bill, deposit slip
- financial healthfinancial health, fiscal health, solvent, insolvent, insolvency
balance sheetincome statement
Periodic profit-loss report
profit and loss statement · cash flow statement · P&L · earnings statement · earnings report
balance sheetimbalance
Lack of proportion
deficit · insolvency · red ink · bankruptcy filing · debt spiral
balance, sheet, stable, balanced, imbalance, balancing, balances, unbalance, counterbalance