Glossary: Cash Flow Statement

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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.

Capital Expenditures (Net): Balance Sheet-related account. Periodic (e.g., annual, monthly, etc.) amount spent by a business on Property, Plant and Equipment. (The amount is net of disposals of Property, Plant and Equipment owned by the business).

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.

Cost of Goods Sold: Statement of Net Earnings account. The direct and indirect product costs associated with the Net Sales recognized in an accounting period.

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.

Depreciation (Net): Balance Sheet-related account. A period cost of operations reflecting the decline in the value of Plant, Property and Equipment due to use and the passage of time. (The amount is net of reductions in Accumulated Depreciation resulting from disposals of Property, Plant and Equipment)

Dividends: Balance Sheet-related account. A distribution to the owners of a business of either cash or securities.

Historical Interest Expense: Statement of Net Earnings account. Actual Total Interest Expense incurred by a business during an historical (vs. a forecast) accounting period.

Income Tax (Expense) Credit: Sources and Uses of Cash account. Amount or Federal and state income tax (owed by) owed to a business during and accounting period.

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.

Interest on Line of Credit: Statement of Net Earnings account. Interest expense on Line of Credit borrowings.

Interest on Subordinated Debt: Statement of Net Earnings account. Interest expense on Subordinated Debt.

Interest on Term Loan: Statement of Net Earnings account. Interest expense on Term Loan and Current Maturities outstanding.

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.

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 Sales: Statement of Net Earnings account. For accrual-based businesses, the dollar amount of revenue earned (net of allowance accounts) during an accounting period.

Operating Expenses: Statement of Net Earnings account. Costs and expenses (in addition to Cost of Goods Sold) recognized in an accounting period. Usually consists principally of administrative, sales and marketing expenses.

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 Income (Expense): Statement of Net Earnings account. Net amount of other income and expense items not elsewhere defined (e.g., gain on sale of assets, interest income, etc.).

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).

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.

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.

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