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EOPA ALowe3

Entrepreneurship Pathway

TermDefinition
Balance Sheet a financial statement that reports assets, liabilities, and owner's equity on a specific date
The basic equation that has to balance is: Assets = Liabilities + Shareholders´ equity
Asset anything of value owned by a business
Liability any amount owed to a creditor
Shareholders´ Equity the shareholder's claims on a company's assets after all of its creditors have been paid
Fixed Assets Or Long-Term Assets items that are relatively permanent, such as land, buildings, and equipment
Current Assets Or Short-Term Assets items that can or will be converted into cash within one year; may also include marketable securities
Securities shares (stocks) and bonds
Depreciation the loss in value of a tangible asset (e.g. a vehicle)
Amortization the loss in value of an intangible asset (e.g. the purchase of a license or trademark)
Created by: AsiaLowe
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