Financial Terms

3. non-monetary benefits, such as company cars and mobile phones
6. a failure to pay a loan or other debt obligation
8. any amount that you owe
15. the amount paid on a loan or line of credit that exceeds the repayment of the principal balance.
16. the amount gained when an asset sells above its original purchase price.
18. an investment in a start-up business that has excellent growth prospects
21. Represents the value of company ownership
22. is the decline in the value of business assets
25. another name of indirect expenses
26. are liabilities of a business and represent money owed to others.
28. the process of winding up an insolvent company
29. difference between your assets and liabilities

1. This is the company's profit excluding overhead expenses
2. the process of recording the financial transactions of a business
4. a person who promises to pay a loan in the event the borrower cannot meet the repayments
5. the process of offsetting goodwill over a period of time
7. A business document in which all ledgers are compiled into debit and credit columns in order to ensure a company's bookkeeping
9. value of asset in books
10. A term referencing how quickly something can be converted into cash.
11. an individual when they cannot pay their debts
12. is the term used to classify the assets that a company has purchased to sell to its customers that remain unsold.
13. an increase in a liability or equity account, or a decrease in an asset or expense account.
14. economic cost a business incurs in order to earn revenue during its operation
16. refers to the net balance of cash moving in and out of a business at a specific point in time
17. It is often used as part of the calculation to evaluate a company's value.
19. the process of comparing your business to similar businesses in your industry.
20. the difference between the selling price of a good or service and the profit
23. An expense that been incurred but hasn’t been paid
24. The company's total profit once costs and expenses are subtracted from revenue
27. are assets that are held for the long term