Glossary of Terms

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Accounts Payable:

Payments owed by a business to its vendors or suppliers for goods and services purchased.

Accounts Receivable:

Payments owed to a business by its customers for goods and services purchased.

Accounts Receivable Collection Period:

The average amount of time it takes to collect the money owed to a business from its customers.

Accrued Expenses:

Expenses that accumulate at regular intervals, such as each day, but which will be paid at a future date.

Accumulated Depreciation:

The cumulative amount of depreciation for the assets listed under property, plant, and equipment (PPE).

Asset Intensity:

The amount of assets required to generate an organization ‚ s income.

Assets:

The items on a balance sheet showing the value of the property an organization owns that are expected to be used to generate future income.