We love to simplify the process for our clients so here is some of the jargon in layman’s terms:
Balance SHEET
This fundamental form provides a brief overview of the company’s assets, or what it owns, and its liabilities and equity.
ASSET
Whatever a business owns is considered an asset. Assets include money, real estate, machinery, and automobiles. A vehicle that was purchased by your firm and is used in the operation of your business is an asset.
LIABILITIES
Are you trying to avoid paying your power bill by burying it under your mattress? It doesn’t matter where you’ve hidden money; loans, bonds, and other unpaid payments are all regarded as liabilities.
EQUITY
The word “worth” is slang meaning equity. The value of a firm’s assets must be added, the liabilities must be subtracted, and the result is the equity of the company. If your assets outweigh your liabilities, you’re doing pretty well.
Income STATEMENT
The income statement provides more information about what is coming in than what is leaving over a given time period. You may determine your bottom line by deducting your expenses and cost of products sold from your revenue. In essence, it informs you if you are making or losing money.
SEEKING SOME HELP?
if you have any questions about these terms or other accounting jargon you’ve heard in business We’re pleased to assist you with all of your accounting needs. Contact Us (available in both Thai and English).
