English for Accounting 4

📚 Important Words to Know
ledger — a book or digital record containing all financial transactions of a business, organized by account
amortization — the gradual write-off of an intangible asset's cost over its useful life
cash flow statement — a financial report showing how cash moves in and out of a business over a period of time
working capital — the difference between a company's current assets and current liabilities, measuring short-term financial health
equity — the value of ownership interest in a company, calculated as total assets minus total liabilities
income statement — a financial report summarizing a company's revenues, expenses, and profits over a specific period
liability — a financial obligation or debt that a company owes to an outside party
asset — anything owned by a company that has economic value and can be converted to cash
trial balance — a list of all general ledger accounts and their balances, used to verify that debits equal credits
retained earnings — the portion of net income kept by a company after paying dividends to shareholders