Business Vocabulary

Balance Sheet: A financial statement that shows the financial health of a business. This includes information on how close a company is to going bankrupt.

Income Statement: A financial statement that shows a company's revenues, expenses, and profits (or losses) over a specific period of time, usually one year

Liquid assets: Things owned by a company that can be easily converted to cash

Goodwill: The value of the reputation of a company and its products

Owners' Equity: The difference between a company's assets and liabilities