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Match the description that best fits each term.

Asset
Balance Sheet
Liability
Bookkeeping
Depreciation
Gross Profit
FICO Score
Net Worth
Net Profit
Appreciation

A method of accounting that involves the timely recording of all financial transactions for the business.
Essential information that gives a "snapshot" of the company's net worth at any given time
When the value of an asset loses some of its value over a period of time.
A type of credit score used by potential lenders for evaluating the wisdom of offering you (or your business) a loan or contract.
Typical items listed for this term are wages, taxes, accounts payable, and accrued expenses.
Typical items listed for this term are cash on hand, owned buildings and equipment, accounts receivable, and anything else that can be turne into cash.
Calculated as Assets - Liabilities
Gross Profit - operating expense - taxes
Calculated as total sales (income) - the costs (sales) related to those sales
When the value of an asset gains in value over a period of time.

1 answer

Here's the matching for each term based on the descriptions provided:

  1. Asset: Typical items listed for this term are cash on hand, owned buildings and equipment, accounts receivable, and anything else that can be turned into cash.

  2. Balance Sheet: Essential information that gives a "snapshot" of the company's net worth at any given time.

  3. Liability: Typical items listed for this term are wages, taxes, accounts payable, and accrued expenses.

  4. Bookkeeping: A method of accounting that involves the timely recording of all financial transactions for the business.

  5. Depreciation: When the value of an asset loses some of its value over a period of time.

  6. Gross Profit: Calculated as total sales (income) - the costs (sales) related to those sales.

  7. FICO Score: A type of credit score used by potential lenders for evaluating the wisdom of offering you (or your business) a loan or contract.

  8. Net Worth: Calculated as Assets - Liabilities.

  9. Net Profit: Gross Profit - operating expense - taxes.

  10. Appreciation: When the value of an asset gains in value over a period of time.