Glossary: Balance Sheet

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Accounts Payable: Balance Sheet account. Amount owed by a business to suppliers of goods and services.

Accounts Receivable: Balance Sheet account. Amount owed to a business for goods or services purchased by its customers.

Accrued Expenses: Balance Sheet account. Expenses which have been recorded in the Statement of Net Earnings, but have not been paid by the business.

Accumulated Depreciation: Balance Sheet account. The sum of cumulative Depreciation Expense recorded against the gross amount of Plant, Property and Equipment recorded on the Balance Sheet.

Assets: Balance Sheet account classification. The dollar cost of tangible and intangible, real and other property owned by a business.

Balance Sheet: Financial Statement. Statement showing the Assets, Liabilities and Owners' Equity in a business as of a certain date.

Cash: Balance Sheet account. The sum of cash and marketable securities (securities convertible into cash in a short period of time) owned by a business.

Common Stock: Balance Sheet account. The amount paid by owners for shares of Common Stock. Common Stock represents the residual equity in the Assets and Net Earnings of a business.

Current Assets: Balance Sheet account classification. Assets that are expected to be converted into cash within one year. For purposes of the analyses contained on this site, Current Assets are: Cash; Accounts Receivable; Inventory; and Other Current Assets.

Current Liabilities: Balance Sheet account classification. Liabilities that are expected to be paid within one year. For purposes of the analyses contained on this site, Current Liabilities are: Line of Credit; Current Maturities; Other Current Obligations; Accounts Payable; Accrued Expenses; Taxes Payable; and Other Current Liabilities.

Current Maturities: Balance Sheet account. The amount of long term debt (Term Loan and Subordinated Debt) that is expected to be paid within one year.

Intangibles: Balance sheet account. Assets which are not physical in nature, and which are usually acquired by acquisition from another business. Examples include trademarks, copyrights, patents and goodwill.

Inventory: Balance Sheet account. Lower of total cost or market value of raw materials, work in process and finished goods (all net of valuation reserves) owned by a business.

Investments: Balance Sheet account. Carrying value of a business' investment in another business, or in securities intended to be owned for more than one year.

Liabilities: Balance Sheet account classification. Amounts owed to the creditors of a business.

Liabilities and Owners' Equity: Balance Sheet account classification. The sum of Liabilities and Owners' Equity, which always equals Total Assets.

Line of Credit: Balance Sheet account. A credit facility, either unsecured or secured (secured
usually by the pledge of Accounts Receivable and Inventory), provided usually by a financial institution (e.g., commercial bank, finance company, etc.)

Net Property, Plant and Equipment: Balance sheet statistic. Property, Plant and Equipment, minus Accumulated Depreciation.

Other Assets: Balance Sheet account. Long term assets of a business not elsewhere classified ( e.g., long term amounts receivable, amount of expenses prepaid beyond one year, etc.).

Other Current Assets: Balance Sheet account. Various other Assets expected to be converted into cash or otherwise liquidated within one year.

Other Current Liabilities: Balance Sheet account. Various other Liabilities payable within one year.

Other Current Obligations: Balance Sheet account. Various other Liabilities payable within one year.

Other Equity: Balance Sheet account. Other Owners' Equity account(s) not elsewhere defined (e.g., foreign currency translation).

Other Liabilities: Balance Sheet account. Various other Liabilities, not elsewhere classified, payable after twelve months from the Balance Sheet date (e.g., non-current deferred taxes).

Other Long Term Obligations: Balance Sheet account. Various other Liabilities, not elsewhere classified, payable after twelve months from the Balance Sheet date (e.g., non-current portion of deferred compensation obligations).

Owners' Equity: Balance Sheet account classification. The cumulative dollar value of ownership's investment and earnings retained in a business. For purposes of the analyses contained on this site, Owners' Equity equals the sum of the following accounts: Common Stock; Preferred Stock; Treasury Stock; Retained Earnings; Other Equity; and Contributed Capital.

Preferred Stock: Balance Sheet account. A class of stock which has certain rights ( e.g., rights to dividends, class voting rights, etc.) superior to those of Common Stock.

Property, Plant and Equipment: Balance Sheet account. The dollar cost of land, buildings, equipment and associated productive assets used in the operations of a business.

Retained Earnings: Balance Sheet account. Cumulative Net Earnings of a business not yet paid out to its owners.

Subordinated Debt: Balance Sheet account. A long term liability (payable after twelve months from the Balance Sheet date) payable to a class of creditors whose rights are junior to some other class or classes of creditors of a business.

Taxes Payable: Balance Sheet account. A liability of a business for federal and state income taxes owed but not yet paid.

Term Loan: Balance Sheet account. A long term liability (payable after twelve months from the Balance Sheet date) payable to a class of creditors whose rights are senior to the providers of Subordinated Debt.

Total Assets: Balance Sheet Statistic. The total dollar cost of all tangible, intangible real and other property owned by a business. For the purpose of analyses contained on this site, the sum of Current Assets; Net Property, Plant and Equipment; Intangibles; Investments; and Other Assets.

Total Liabilities and Owners' Equity: Balance Sheet statistic. The amounts of Total Assets owed to creditors; and owned by owners of a business. For purposes of the analyses contained on this site, the sum of Current Liabilities; Total Long Term Liabilities; and Owners' Equity.

Treasury Stock: Balance Sheet account. The dollar cost of Common Stock of a business which has been purchased, by the business, from its owners.