IV. Match the terms to their definitions

1. Assets	a) Any year connected with finance, such as a company’s accounting period or a year for which budgets are made up. This is not necessarily January to December.
2. Profit and loss account	b) A statement showing the inflows and outflows of cash and cash equivalents for a business over a financial period.
3. Operating expenses and revenues	c) A company’s good reputation with existing customers.
4. Financial year	d) The amounts owed by a business to suppliers (e.g. for raw materials). They are classed as current liabilities on the balance sheet.
5. Balance sheet	e) An asset of a business intended for continuing use, such as equipment, machinery, buildings, land.
6. Current assets	f) The measure of the cost or revalued amount of the economic benefits of a tangible fixed asset that have been consumed during an accounting period. This includes the wearing out, using up, or other reduction in the useful economic life of a tangible fixed asset.
7. Liabilities	g) An asset that can neither be seen or touched. The most common of these are goodwill, and intellectual properties such as patents, trademarks and copyrights.
8. Goodwill	h) The amounts owing to a business from customers for invoiced amounts. They are classed as current assets on the balance sheet.
9. Fixed assets	i) The funds of an organization that have been provided by its owners, i.e. its total assets less its total liabilities.
10. Accounts payable	j) A statement of the total assets and liabilities of an organization at a particular date, usually the last day of the accounting period.
11. Cash-flow statement	k) A source of future economic benefits obtained or controlled as a result of past transactions or events.
12. Intangible assets	l) The costs and revenues incurred or generated by an organization in the normal course of business, excluding any extraordinary items.
13. Owner’s equity	m) A company’s debts to suppliers, lenders, the tax authorities.
14. Accounts receivable	n) Money in the bank, investments that can easily be turned into money, money that customers owe, stocks of goods that are going to be sold.
15. Depreciation	o) A statement of the profit (or loss) of an organization over a financial period. It explains what has happened since the previous balance sheet; the users of financial statements require information on the progress and future prospects of the company.