SME Toolkit Logo
Partner Logo
 Share  Print Version  Email

Balance Sheet Glossary

Adapted from content excerpted from the American Express® OPEN Small Business Network

Cash Cash on hand in all checking, savings, and short-term investment accounts when books were closed at the end of the fiscal year
Accounts receivable Income derived from all products or services for which you bill. Calculate this number based on what is logged into the books at the close of the fiscal year
Inventory Take this from the cost of goods table. It is inventory of material used to manufacture your company's products
Current assets Includes cash, accounts receivable, inventory and other assets
Long-term or fixed assets Long terms assets are so called because they will last more than one year as opposed to short-term assets that are spent or used up in manufacturing
Capital and plant Book value or equipment and property, less depreciation
Investment Investments of the company that cannot be converted into cash in less than one year
Long-term assets Capital and plant plus investments and any other assets
Total assets Sum of total assets and total long-term assets
Liabilities Liabilities are also categorized as current or long-term
Accounts payable All expenses that are due and payable
Accrued liabilities Expenses incurred that have not been paid when books are closed
Taxes Due and payable when books are closed
Total current liabilities Accounts payable plus accrued liabilities plus taxes
Long-term liabilities Liabilities that are not due in the next 12 months
Bonds payable Bonds at end of year that are due over a period exceeding one year
Mortgage payable The mortgage amount due when books close
Notes payable Amount owed on long-term debt that will not be paid during current fiscal year
Total long-term liabilities Bonds payable plus mortgage payable plus notes payable
Total liabilities Total current plus long-term liabilities
Owners equity Total assets minus total liabilities

To Financials Toolbox

FAQ's   Introductory Elements   Business Description The Market
Development & Production Sales & Marketing Management Financials

Copyright © 1995-2016, American Express Company. All Rights Reserved.

 Share  Print Version  Email
Comments & Ratings (10) Overall  
  • Currently 3.7/5 Stars.
If you are a human, do not fill in this field.
Click stars to rate.
   Comments are truncated at 1000 characters
What Others Are Saying
Sort by
  • Currently 4.0/5 Stars.
Robertbengly Bengly, Bali, Indonesia  |  October 31, 2016
Thank you for sharing, however it seems that to be a strong company is also need to have a strong team and sometime when we have an idea to expand the business there will be need a strong team and management system,this is just sharing,thank you for your great article and this is one of the important thing is doing the business. visit also us
  • Currently 0.0/5 Stars.
RBS FINANCE  |  October 19, 2016
Are you a business man or woman? Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you need funds to finance your project? We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) at our superb interest rate of 3%. For application and more information send replies to the following E-mail address: (Whatsapp +917289037578 +17274140074) Thank you
  • Currently 4.0/5 Stars.
Alip Iskandar, google, Indonesia  |  August 22, 2016
  • Currently 5.0/5 Stars.
Bette Daoust  |  June 23, 2016
Thanks for the great example of a marketing strategy statement, we have been able to use this as a template for our own statement. -Dr. Bette Daoust
  • Currently 4.0/5 Stars.
Abdulkadir Muhammad  |  August 17, 2015
  • Currently 5.0/5 Stars.
Alex Shakaryan  |  October 13, 2014
  • Currently 0.0/5 Stars.
Gopal krishna Debnath  |  November 28, 2013
customer is the focal person of a business, hence he/she should be properly honored and addressed. clear description of the product is very important so that actual customer get the real and to the point information.
  • Currently 5.0/5 Stars.
Sandeep Chandra  |  February 03, 2011
  • Currently 5.0/5 Stars.
Muhammad Hamayun  |  December 09, 2010
  • Currently 5.0/5 Stars.
moqassalamin amin  |  September 01, 2010