Accounting Terms

4. Is the process of recording, analyzing, and interpreting the economic activities of a business.
5. The owner’s investment in the business, or the financial part of the business that is owned by the owner.
8. All the money that is left over after deducting the gross profit and the expenses.
9. A financial statement that shows the financial position of a business on a single, specific date.
10. All the money that is left over after deducting the cost of goods sold form the revenue.
12. Are things of value that the business owns.

1. Are the debts of a business.
2. Liquid assets can easily be turned into cash.
3. A financial statement that shows a business’s profitability over a stated period of time.
6. Are the costs of operating the business during the period the sales took place.
7. A business earns revenue or income from the sales of goods or services.
11. A 12 month operating period for a business.