Financial Terms

2. the difference between the selling price of a good or service and the profit
4. a person who promises to pay a loan in the event the borrower cannot meet the repayments
8. A term referencing how quickly something can be converted into cash.
9. the amount paid on a loan or line of credit that exceeds the repayment of the principal balance.
11. a failure to pay a loan or other debt obligation
14. value of asset in books
16. It is often used as part of the calculation to evaluate a company's value.
17. an individual is bankrupt when they cannot pay their debts
20. the amount gained when an asset sells above its original purchase price.
21. non-monetary benefits, such as company cars and mobile phones
25. when a private company offers shares in the company to the public for the first time
26. Accounts Payable are liabilities of a business and represent money owed to others.
29. is the decline in the value of business assets
30. is the term used to classify the assets that a company has purchased to sell to its customers that remain unsold.
31. the process of recording the financial transactions of a business
32. economic cost a business incurs in order to earn revenue during its operation

1. are assets that are held for the long term
3. an increase in a liability or equity account, or a decrease in an asset or expense account.
5. This is the company's profit excluding overhead expenses
6. refers to the net balance of cash moving in and out of a business at a specific point in time
7. A business document in which all ledgers are compiled into debit and credit columns in order to ensure a company's bookkeeping
8. the process of winding up an insolvent company
10. an investment in a start-up business that has excellent growth prospects
11. any amount that you owe
12. of Goods Sold (COGS) the expenses that directly relate to the creation of a product or service
13. Assets of a business and represent money owed to a business by others
15. the process of offsetting goodwill over a period of time
18. capital is the difference between all the current assets and current liabilities of the company.
19. another name of indirect expenses
22. The company's total profit once costs and expenses are subtracted from revenue
23. difference between your assets and liabilities
24. the process of comparing your business to similar businesses in your industry.
27. An expense that been incurred but hasn’t been paid
28. Represents the value of company ownership