Proven    Glossary

Accounts payable (AP) is a liability that represents the amount of money that a company owes to its ...

Accounts receivable (AR) is an asset that represents the amount of money that a company is owed by i...

Accounts receivable is a current asset on a company's balance sheet that represents amounts that are...

An accredited investor is a term used by the SEC (U.S. Securities and Exchange Commission) to descri...

Accrual accounting is an accounting method that records financial transactions when they are incurre...

Accruals are accounting entries that record expenses or revenue in the financial statements when the...

Amortization is a method of allocating the cost of an intangible asset over its useful life. Similar...

An angel investor is a high net-worth individual who provides financial backing to startups or early...

An asset is something valuable that an individual, corporation, or country owns or controls with the...

Auditing is the process of reviewing and verifying the accuracy and reliability of financial stateme...

The balance sheet is a financial statement that provides a snapshot of a company's financial positio...

Bookkeeping is the process of recording and maintaining financial transactions in a systematic and o...

Capital expenditures (CapEx) are funds that a company spends on the acquisition, improvement, or rep...

Cash basis accounting is a method of accounting in which transactions are recorded when cash is rece...

The cash flow statement is a financial report that summarizes the inflows and outflows of cash for a...

The chart of accounts is a list of all the accounts that a company uses to record its transactions. ...

Cost of goods sold (COGS) is an accounting measure that represents the direct costs of producing or ...

Current liabilities are short-term financial obligations that a company owes to its creditors, suppl...

Depreciation is a method of allocating the cost of a tangible asset over its useful life. The purpos...

An expense is a cost that a company incurs as part of its business operations, such as the purchase ...

Fixed assets are long-term assets that a company owns and uses in its business operations, such as p...

The general ledger is the central repository of a company's financial transactions. The general ledg...

Gross income in a business refers to the total revenue earned by the business from all sources befor...

The income statement, also known as the profit and loss statement, is a financial report that summar...

An intangible asset is an asset that lacks physical substance but has value to a company because of ...

Inventory is the stock of goods that a company holds for sale or for use in its operations. Inventor...

Liabilities refer to the debts or obligations of a company that are owed to its creditors. Liabiliti...

A loss is the amount of money that a company loses when its expenses exceed its revenue. This means ...

Net income in a business refers to the amount of money earned by the business after all expenses and...

Profit, also known as net income, is the amount of money that a company earns after deducting all of...

A Profit and Loss Statement (P&L Statement) is a financial statement that provides a summary of ...

Retained earnings are the portion of a company's net income that is kept by the company, rather than...

Revenue refers to the income earned by a company from its business operations, which typically inclu...