Basic ecomonic terminology. Искренко Э.В - 38 стр.

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                  ASSETS AND LIABILITIES

      1. Assets — the items of value that a firm owns.
      2. Current assets — cash and other assets that can be quickly
converted into cash or that will be used in one year or less.
      3. Fixed assets — assets that will be held or used for a period
longer than one year.
      4. Tangible assets — include land and buildings, plant and
machinery, investments, debtors and cash.
      5. Intangible assets — assets that do not exist physically but
that have a value based on legal rights or advantages that they
confer on a firm.
      6. Depreciation — the process of apportioning the cost of a
fixed asset over the period during which it will be used.
      7. Liquidity — the ease with which an asset can be converted
into cash.
      8. Expenses — the costs incurred in the generation of revenue.
      9. Direct expenses (costs) — expenses which can be directly
associated with the cost of producing a particular article or service.
      10. Overhead (indirect, operating) expenses (costs) — expenses
incurred in manufacture though not directly identified with any
particular item produced.
      11. Prepaid expenses — assets that have been paid for in advance
but not yet used.
      12. Liabilities — are borrowed funds (debt) and delayed
payments (such as payables and accruals) of a business.
      13. Current liability — debts that will be repaid in one year or less.
      14. Long-term liabilities — debts that need not be repaid for at
least one year.
      15. Goodwill — the value of a firm’s reputation, location,
earning capacity, and other intangibles that make the business a
profitable concern.
      16. Accounts payable — short-term obligations that arise as a
result of making credit purchases.
      17. Accounts receivable — amounts that are owed to a firm by
its customers.
      18. Notes payable — obligations that have been secured with
promissory notes.
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