Income Statement and Balance Sheet Vocabulary

A resource owned and used by the business for more than a year is called a

• Asset

• Non Current Asset

• Current Asset

• Revenue

An example of a Current Asset is

• Car

• Inventory

• Land

• Creditor

An obligation to pay for something in a short term is called

• Current Liability

• Expense

• Asset

• Capital

Rent expense , wages, water bill and insurance expense are all classed as

• revenue

• expense

• liability

• asset

Working capital is calculated by

• Total Current Assets - Total expenses

• Total liabilities + total assets

• Total current assets-total current liabilities

• Assets+capital

Gross profit + revenues - expenses = net profit/loss

• True

• False

any 12-month period you choose to treat as a year for accounting purposes

• income statement

• profit and loss statement

• calendar year

• fiscal year

a financial statement that summarizes the assets and liabilities (debts) of a business. It shows how much a business is worth at a particular time

• balance sheet

• asset

• liability

• owner’s equity

Everything owned by the business that has a monetary value.

• balance sheet

• asset

• liability

• owner’s equity

Any outstanding bill or loan that must be repaid.

• balance sheet

• asset

• liability

• owner’s equity