Accounting Key Terms

2. Forecast: An estimate of future financial outcomes for a company or project.
3. A company's legal financial debts or obligations that arise during business operations.
6. of Cash Flows: A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.
7. Statements: Written records that convey the business activities and the financial performance of a company.
10. The process of recording financial transactions pertaining to a business.
11. Equity: The total assets of an entity, minus its total liabilities.
13. Plan: A roadmap for managing your finances to achieve your goals.
15. Accepted Accounting Principles (GAAP): A collection of commonly-followed accounting rules and standards for financial reporting.
17. The wealth, whether in money or assets, owned or employed in business by an individual, firm, or corporation.
18. A financial plan for a defined period, often one year.
20. Flows: The total amount of money being transferred into and out of a business.
21. Resources owned by a company that have economic value.

1. Sheet: A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
4. The value of an owner's interest in a property or business, after all liabilities have been deducted.
5. Assets: Assets that are expected to be converted into cash within a year.
8. Equation: The foundation of double-entry bookkeeping, represented as Assets = Liabilities + Equity.
9. Receivable: Money owed to a company by its debtors.
12. Assets: Long-term tangible pieces of property or equipment that a firm owns and uses in its operations.
14. Anything of value that is owned or controlled.
16. Payable: Money owed by a company to its creditors.
19. Statement: A financial statement that shows a company's revenues and expenses over a specific period.