Passive The liability in accounting terms indicates what are the debts that a company has. This concept of accounting is very useful, above all, for the construction of the financial balance sheet. . Current liabilities With this concept of accounting, the short-term debts of organizations are known, whether they are debts for financing or the acquisition of goods or services. The particular thing about current liabilities is that it takes into account a period of time of less than one year. . Net Worth According to Economipedia , the web portal that we take as a reference for the construction of this glossary of accounting words .
net worth is all the elements that constitute a company's own whatsapp mobile number list financing. . Chart of accounts The accounting plan is a document that compiles all the rules and procedures with which a company must comply to carry out accounting. In some places, it is also known by the name of General Accounting Plan (PGC). The concept of chart of accounts is very important for any company, since it serves to regulate economic and accounting operations. . Bankruptcy Although it is an accounting concept that no business owner wants to know anything about, we could not leave it out of the glossary of accounting words .
The concept of bankruptcy indicates that a company is no longer in a position to pay its debts due to lack of liquidity. That is, a company declares bankruptcy when its obligations or debts are greater than the economic resources it possesses. Person looking for accounting terms Source: Pexels . Asset rotation To finish the glossary of accounting words , we have to talk about asset turnover. This accounting term speaks of a financial indicator that measures the degree of efficiency in the asset management of a company. For organizations it is important to know the turnover of assets because thanks to this they can determine if there is a risk of falling into a situation of insolvency or bankruptcy. In addition, calculating asset turnover is very simple, just divide sales by assets.