Asset
Resource owned that has economic value.
Public flashcard set
Accounting Basics
Essential finance terms for non-accountants.
business finance student
Flashcards
Liability
What the business owes.
Equity
Owners' residual interest (Assets − Liabilities).
Revenue
Income from normal business activities.
Expense
Cost incurred to generate revenue.
Balance sheet
Snapshot of assets, liabilities, equity.
Income statement
Profit and loss over a period.
Cash flow
Movement of cash in and out.
Debit
Left side of an accounting entry.
Credit
Right side of an accounting entry.
Accrual
Recognize revenue/expense when earned/incurred.
Depreciation
Allocating asset cost over useful life.
Gross margin
Revenue minus cost of goods sold.
Break-even
Point where revenues equal costs.