Unit 6 Financial Records & Insurance - Spr '21 Vocab only

anything owned by a company that has value

• asset

• liability

• expense

• income

money a business owes to suppliers and other creditors

• accounts receivable

• accounts payable

• revenue

• creditor

profit made after subtracting ALL expenses

• gross profit

• retained earnings

• net profit

• income

profit made after subtracting cost of goods sold

• capital

• accounts payable

• gross profit

• net profit

earnings made over time and kept in the company

• retained earnings

• owner's equity

• capital

• cash

money owed to a business for goods or services delivered or used but not yet paid for by customers

• accounts receivable

• liquidity

• assets

• accounts payable

investment/exchange money for ownership

• revenue

• insurance

• capital

• retained earnings

value of what owner has in the business after liabilities (debt) are accounted for

• income

• owner's equity

• assets

• gross profit

Direct cost of producing goods/services (includes material and labor)

• cost of goods sold

• accounts payable

• balance sheet

• operating expenses

amount of value lost due to assets losing value

• operating expense

• depreciation expense

• insurance

• budget