Common Business terms and definitions:

Articles of Incorporation

The Articles of Incorporation are a legal document filed with a provincial or territorial government, or the federal government, which sets out a corporation's purpose and regulations. This is one of the documents necessary to the incorporation process.

Assets

Assets are any property owned by a person or business. Tangible assets include money, land, buildings, investments, inventory, cars, trucks, boats, or other valuables. Intangibles such as goodwill are also considered to be assets.

Accounts Receivable

In the accounting system, the entries in the accounts receivable ledger represent amounts of money you are owed. These amounts are usually the result of the sale of assets or for services you have provided.

Accounts Payable

In accounting, accounts payable are debts resulting from purchasing assets or receiving services on credit or on an open account. You have accounts payable when you have not yet paid for the assets or services you have received.

Small Business - commonly used terms

I come across a lot of small business owners and almost with everyone I find that commonly used business terms and definitions are not very clear or the business owners barely understand what I meant. I guess the business owners do their business and let the accountants figure out what those terms mean. I thought why not have a little start up with commonly used terms before we get into details of small business and small business financing. Here I started with 'A' and will post alphabetically. Hope you will get a clear understanding of the terms and definitions.