terminology - Profit and Loss Account Balance sheet Cash...

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Profit and Loss Account Balance sheet Cash flow statement Overheads Utility costs Tangible vs Intangible assets Current assets A balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. Current assets include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash Inventory The raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale Cash in vault Cash kept on hand in a depository institution's vault to meet day- to-day business needs, such as cashing checks for customers; can be counted as a portion of the institution's required reserves Long-term assets The value of a company's property, equipment and other capital assets, minus depreciation. This is reported on the balance sheet Fixed assets A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time Financial assets Cash kept on hand in a depository institution's vault to meet day- to-day business needs, such as cashing checks for customers; can be counted as a portion of the institution's required reserves Debtors - Account receivable Money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. Receivables usually come in the form of operating lines of credit and are usually due within a relatively short time period, ranging from a few days to a year Investment property A real estate property that has been purchased with the intention of earning a return on the investment (purchase), either through rent (income), the future resale of the property, or both. An investment property can be
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This note was uploaded on 08/22/2011 for the course LANG 405 taught by Professor Johnson during the Spring '11 term at RMIT Vietnam.

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terminology - Profit and Loss Account Balance sheet Cash...

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