Financial Terms Flashcards

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Cash

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Cash is the most liquid asset and is used to pay for goods and services.

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Accounts Receivable

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Accounts Receivable represents money owed to a company by its customers for goods or services delivered.

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Loans Payable

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Loans Payable are amounts a company owes to lenders for borrowed funds.

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Retained Earnings

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Retained Earnings are the cumulative amount of net income that a company retains, rather than distributing it as dividends.

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Office Supplies

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Office Supplies are the consumable items used in the office for daily operations.

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Sales Revenue

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Sales Revenue is the income generated from normal business operations and includes discounts and deductions.

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Rent Expense

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Rent Expense is the cost incurred for renting property or equipment.

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Machinery

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Machinery refers to the machines used in the production of goods.

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Dividends

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Dividends are payments made to shareholders from a company's profits.

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Advertising Expense

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Advertising Expense is the cost incurred to promote a company's products or services.