Business Terms To Know
Business Terms To Know
Business Terms To Know
Terms Definition
ACCOUNTANT A qualified person that prepares and maintains the financial
records of a business. With more training than a bookkeeper,
an accountant has a larger responsibility including preparing
financial statements using the data recorded by the
bookkeeper.
ACCOUNTS PAYABLE any bills you have not yet paid to your suppliers, vendors or
creditors is called an accounts payable. The sum of all of the
accounts payables you owe is listed as a current liability on
your balance sheet.
ACCOUNTS RECEIVABLE The amounts owed to a company by its customers such as
those for services rendered but not yet paid for, or for goods
delivered and not yet paid for
ACCOUNTING The recording, classifying, summarizing, and interpreting in
a significant manner and in terms of money, transactions,
and events of a financial character.
ALLIANCE Close association of groups or businesses.
AUCTION A public sale of goods to the highest bidder
BALANCE SHEET A statement of assets, liabilities, and capital at a specific
period of time. Assets = Liabilities + Capital. The Balance
Sheet is a "snapshot" of a company's financial standing at
one point in time. It is used to determine the financial status
of a company, what the company's present value is.
UNDELIVERED ORDERS The amount of orders for goods and services outstanding for
which the liability has not yet accrued. For practical
purposes, represents obligations incurred for which goods
have not been delivered or services not performed.
VENTURE CAPITAL Money used to support new or unusual commercial
undertakings; equity, risk, or speculative capital. This
funding is provided to new or existing firms that exhibit
above-average growth rates, a significant potential for
market expansion, and the need for additional financing for
business maintenance or expansion.
WORKERS' A state-mandated form of insurance covering workers
COMPENSATION injured in job-related accidents. In some states the state is the
insurer; in other states insurance must be acquired from
commercial insurance firms. Insurance rates are based on a
number of factors including salaries, firm history, and risk of
occupation.