A
Assets
Items of Economic Value that you own / substantially control

B
Balance sheet
Snapshot of the business showing the Assets, Liabilities, and Owners Equity

C
Cash flow
The total cash entering & leaving your bank account

D
Depreciation
The wear and tear on the fixed assets in our business

E
EBITDA
Earnings Before Interest Taxes Depreciation & Amortization

F
Financial statements
The Income Statement, Balance Sheet, and Cash Flows

G
GAAP
Generally Accepted Accounting Principles

H
Historical cost
The cost to acquire an asset

I
Income statement
Show’s you the income & expenses of your business, and various levels of profitability

J
Journal entries
Your Debits & Credits

K
KPIs
Key Performance Indicators

L
Liabilities
Obligations & amounts owed to creditors of the business

M
Matching principle
An accounting principle that requires you to match the timing of income with the timing of expenses

N
Net income
Revenue – COGS – Operating Expenses + Other Income – Other Expenses

O
Owners Equity
Amounts contributed by owners + prior earnings

P
Profit
What you earn after costs

Q
Quick ratio
(Current Assets – Inventory) / Current Liabilities

R
Revenue
Your income

S
Shareholders
The owners of the company

T
Taxes
Amounts owed to the government

U
Unearned revenue
The amount of revenue collected / due, but not yet earned

V
Valuation
How much a company is worth

W
Working capital
Current Assets – Current Liabilities

X
eXpenses
The costs associated with your business

Y
Yield
The return on an investment

Z
Zero-based budgeting
A method of budgeting where you start from 0 and justify every financial activity