Unit 7 Chapter 2 Flashcards Preview

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Flashcards in Unit 7 Chapter 2 Deck (13):
1

Balance sheet

A financial statement recording the assets and liabilities of a business on a particular day at the end of an accounting period

2

Assets

Items owned by a business

3

Liabilities

Money owed by a business to others

4

Statement of financial position

Another name for balance sheet

5

Consolidated balance sheet

The total balance sheet for a business, including all its branches

6

Capital

The money invested into a business and is used to purchase a range of assets

7

Mortgage

A long-term loan used to purchase property

8

Debentures

Loans with fixed interest rates which are long term and may not even have a repayment date

9

Depreciation

The reduction of the value of an asset over a period of time

10

Income Statement

A financial statement showing a firm's sales revenue over a trading period and all the relevant costs generated to earn that revenue

11

Ratio analysis

A technique for analysing a business's financial performance by comparing one piece of financial information with another

12

Profitability

A measure of financial performance that compares a business's profits to some other factors such as capital employed or revenue

13

Profit margin

A ratio that expresses a business's profit as a % of its revenue over a trading period