Accounting Vocab

The amount of money that a company gets from its customers.

• Revenue

• Expense

• Profit

• Net Profit

The money going out of a business, such as money spent on raw materials, machinery, and salaries.

• Assets

• Liabilities

• Revenue

• Expenses

Resources that either have value or can be used to produce something of value.

• Assets

• Liabilities

• Owner's Equity

• Revenue

A financial statement that highlights what a business owes (liabilities), what a business owns (assets), and how much shareholder equity (profits) exists at a certain point in time.

• Balance Sheet

• Income Statement

• Statement of Cash Flows

• Statement of Owner's Equity

What the company needed to spend (payments to suppliers, etc.) in order to generate its net sales.

• Cost of Sales (Cost of Goods Sold)

• Expenses

• Liabilities

• Owner's Equity

Profit before taxes are paid.

• Gross Profit

• Net Profit

• Cost of Goods Sold

• Assets

A statement that summarizes the money brought in (revenue), what it paid out (expenses), and the difference (profit).

• Income Statement

• Balance Sheet

• Statement of Owner's Equity

• Cash Flow Statement

Something you can't touch but still provides business value to your company.

• Intangible Asset

• Tangible Asset

• Liability

• Expense

An obligation of the company to pay someone else for products or services rendered in the past.

• Liability

• Asset

• Expense

• Owner's Equity

A figure that indicates how profitable the company has been during the reporting period.

• Net Profit (or Net Income)

• Gross Profit (or Gross Income)

• Taxable Profit (or Taxable Income)

• Revenue Profit (or Revenue Income)