expenditure for a specific period of time, e.g. a month, a quarter, a year. Balance Sheet
It is the total picture of a company’s worth at a
given point in time, e.g. June 30. It lists the value of all assets and liabilities. Income Moneys received or expected to be received. (i.e. invoice) Expenditure
Moneys spent or bills received.
Assets
A physical asset is anything that a person or
business owns, e.g. car, furniture, building, equipment. Current Asset Also known as “liquid asset”, are those that a business could expect to realise in cash, sell or consume during the current year, e.g. cash, short-term investments. Non-Current Asset
Also known as “non-liquid asset”, are long-
term assets such as property and equipment. Owner’s Equity
The net worth of the business. All assets less
all liabilities equals net worth. Liabilities
Loans or expenses that a person or company
has committed to and must pay for. Capital
Money and property that a person or company
uses to transact business. Reserves
Funds that have been set aside for special
purposes or to cover contingencies. Debtors
People who owe you money.
Creditors
People you owe money to.
Depreciation An amount which represents a decrease in the value of an item over time due to wear and tear - usually expressed as a percentage amount each year.