Vocabulary
Study the following vocabulary.
Assets and liabilities
assets – general term for the things a company owns that have value or earning potential
current assets – a company's cash or other items (stocks and investments, goods, etc) that can easily be turned into cash
fixed assets – other items of value owned by a company which are not easily convertible into cash, for example equipment, machinery, buildings and land
intangible assets – things which have value but cannot be directly seen, felt or measured, for example reputation or brand awareness and image
depreciation – the loss of value in fixed assets over time (computers, cars, etc)
book value – the worth of a business according to the account books, as compared with its actual market value
market value – the amount something, for example a fixed asset, could be sold for on the open market
current liabilities – debts that must be paid within a year
long-term liabilities – debts payable in more than a year, for example bank loans
balance sheet – a company's record of its assets and liabilities as of the end of a given financial period