Term
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Definition
| Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, a house, a car, and other property. |
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Term
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Definition
| A calculation of the approximate sales volume required to just cover costs, below which production would be unprofitable and above which it would be profitable. Break-even analysis focuses on the relationship between fixed cost, variable cost and profit. |
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Term
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Definition
| Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. |
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Term
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Definition
| A non-cash operating expense that reduces the value of a tangible asset as a result of wear and tear, age, or obsolescence. Depreciation is recorded in the financial statements of an entity as a reduction in the carrying value of the asset in the balance sheet and as an expense in the income statement. |
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Term
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Definition
| The legal entity and/or person who guarantees an obligation and has a legal duty to fulfill it |
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Term
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Definition
| A financial obligation, debt, or claim, i.e. notes payable and accounts payable. |
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Term
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Definition
| Shows the entity’s income and expenses. (similar to a Profit & Loss Statement) |
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Term
| P&L (Profit and Loss Statement) |
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Definition
| also considered as Income Statement or Statement of Earnings. Measures Net Income or Loss over a defined period of time. In addition, having the simple formula of Revenues – Expenses = Net Income/Loss |
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Term
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Definition
| An estimate of future economic or financial performance. Generally presented in the form of a Profit and Loss StatementP&L. |
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