Education

 

Glossary

  • Accessory Goods - products required by commercial operations to conduct business, such as: office copiers, automobile wheel balancers, auxiliary power supplies, air compressors, etc.
  • Accounts Payable - short term debts incurred as the result of day-to-day operations.
  • Accounts Receivable - monies due your enterprise as the result of day-to-day operations.
  • Accrual Based Accounting - an accounting method that enters income and expenses into the books at the time of contract versus when payment is received or expenses incurred.
  • Assets - all real or intellectual property owned by the enterprise that has a positive financial value.
  • Balance Sheet - a statement of assets and liabilities.
  • Barriers to Entry - conditions that create difficulty for competitors to enter the market. For example, copyrights, trademarks, patents, dedicated distribution channels and high initial investment requirements.
  • Break-Even Point - the point at which revenues are equal to expenses.
  • Business Services - services offered to commercial enterprises, such as: equipment maintenance, supplying of part time personnel, engineering, design and management consulting, etc.
  • Capital - the financial investment required to initiate and/or operate an enterprise.
  • Cash Based Accounting - an accounting method that enters income and expenses into the books at the time when payment is received or expenses incurred.
  • Cash Flow - the transfer of monies into and out of an enterprise.
 

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