Accounting

Fixed Costs

A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages

Variable Costs

A periodic cost that varies in step with the output or the sales revenue of a company.

Financial Statements

Accounting reports compiled necessary for the fair evaluation of operations of an entity i.e. the balance sheet, income statement, and the cash-flow statement

Liability

Accounts and wages payable, accrued rent and taxes, trade debt, and short and long-term loans.

CPA

Certified Public Accountant. An individual who has passed the uniform examination administered by the American Institute of Certified Public Accountants, and who has received state certification to practice accounting.

Accounts Receivable

Sales made but not paid-for by the customer.

Asset

Something valuable that an entity owns, benefits from, or has use of, in generating income.

Basic Accounting Equation

The relationship between income, expenses, and the ownership of the company; Assets = Liabilities + Owners Equity

Accounts Payable

Unpaid bills. Accounts that are owed to suppliers as distinguished from accrued interest, rent, salaries, taxes, and other such accounts

Equity

an ownership interest in a corporation in the form of common stock or preferred stock, total assets minus total liabilities