Some more terms in this post:
Liability/Debt:A financial obligation or debt of a business arising from a past transaction that is to be paid in the future.
Limited Partnership:A partnership in which one or more of the partners have had their liability for the debts of the partnership limited to their contributed capital.
Living Costs:Personal drawings from the business not including fees or salaries paid to shareholders or management that are included in expenses.
Liquidity:Includes working capital, quick ratio, collection period, inventory turnover, bank support. Measures the enterprise's capacity to meet current obligation using its most liquid assets and short-term financing opportunities.
Long-Term Debt/Long Term Liabilities:A debt with a maturity date beyond one year from the date of the balance sheet or beyond the normal operating cycle (where the cycle is longer than one year). Long-term debt excludes that portion of the debt principal due within one year.
Machinery, Equipment & Vehicles:Includes all machinery and equipment owed by the business. On a corporate financial statement is usually recorded at purchase cost less accumulated depreciation and includes direct purchase and installation expenses.
Mandatory Inventory Adjustment:An adjustment usually made to expenses or net farm income for tax purposes. These adjustments do not reflect actual values of inventory on hand and should not be included in net income calculations for analysis purposes.
Net Farm Income/ Net Profit or Loss:The excess of revenues over expenses for a given period of time. If expenses exceed revenue, the difference is called net loss.
Non-Cumulative Stock:That part of issued stock for which settlement has been received.
Off-farm Income (net):Employment, investment or business income earned outside of the farm operation less all deductions from source including income taxes, CPP and EI premiums. This amount does not include capital gains reported on the tax return.
Operating expenses:Gross expenses less term interest, depreciation, land rent and property taxes.
Operating Expenses (AGRIBEX):Usually contains expenses directly related to selling and promoting business products or services.
Operating loan/ Line of credit: Cash advance to a business to pay for operating costs. This loan usually provides for repayment within one year or the normal operating cycle.
Optional Inventory Adjustment: An adjustment usually made to expenses or net farm income for tax purposes. These adjustments do not reflect actual values of inventory on hand and should not be included in net income calculations for analysis purposes.
Other Income: All income not included in revenue, gain on disposal or extraordinary income.
Paid-up Capital: That part of issued capital for which settlement has been received.
Participating Stock: A class of preferred capital stock that, in addition to providing a dividend at a fixed or determinable annual rate, participated with common stock in the distribution of profits and sometimes in the residual distribution at liquidation of company.
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