Professional Documents
Culture Documents
Asset : something which has a value or can add value in near future
Liability : an obligation to pay something . A company's financial debt or obligations
that arise during the course of its business operations.
Stockholder’s Equity : equity (or owner's equity) is the difference between the
value of the assets and the value of the liabilities of something owned.
Stock Holder : An individual, group, or organization that holds one or more shares
in a company, and in whose name the share certificate is issued.
Stock : Shares are units of ownership interest in a corporation or financial asset that
provide for an equal distribution in any profits, if any are declared, in the form of
dividends.
Inventory: a complete list of items such as property, goods in stock, or the contents
of a building
Property, Plant & Equipment (PP&E) : PP&E is also called tangible fixed assets.
These assets are physical, tangible assets and they are expected to generate economic
benefits for a company for a period of longer than one year. Examples of PP&E include land,
buildings and vehicles.
Accounts Receivable : If the company sells goods or provides services but is yet to
collect payment against the same, it is termed as account receivable.
Notes Receivable : On selling goods on a long term credit to a customer who
premises to pay money on or before a predefined date via a legal note, it is termed
as notes receivable.
Interest Receivable : interest that needs to be collected from the buyer on loan
Terms on materials :
Accounts, Notes & Interest Receivable :
Credit risk : It refers to the risk that a borrower may not repay a loan and that the
lender may lose the principal of the loan or the interest associated with it. Credit risk
arises because borrowers expect to use future cash flows to pay current debts; it's
almost never possible to ensure that borrowers will definitely have the funds to repay
their debts.
Delinquent accounts : (tending to commit minor crime ; failing in one's duty) Those
accounts which are likely to not pay back
Credit/Loan portfolios : they are the major asset of banks, thrifts, and other
lending institutions. The value of a loan portfolio depends not only on the interest
rates earned on the loans, but also on the quality or likelihood that interest and
principal will be paid.
Days Sales Outstanding : measure of the average number of days that it takes a
company to collect payment after a sale has been made
(Accounts receivable ÷ Total credit sales) x Number of days
Billing cycle : is the interval of time from the end of one billing, or invoice, statement
date to the next billing statement date.