Notes Taking Guide Key
Topic #4051
Record Keeping
Kendra Butters
A. Definitions
a. Expense – cost of goods or services involved with producing a product or service
b. Income – payment received from goods or services, can be cash or noncash
c. Inventory – Listing and valuation of all business assets
d. Asset – anything of value owned by a business or individual
e. Liability – money, goods and/or services which are owed.
f. Net Worth – net ownership of an individual or business; owner’s equity
g. Non-current Assets – assets not sold, converted into cash or used up within the
year
h. Current Assets – assets that are used or sold within the year
i. Balance sheet – financial statement of equity for an individual/business for a
specific point in time; list of assets and liabilities
j. Opening Inventory – inventory the business or individual starts out with
k. Closing Inventory – inventory the business or individual ends up with
B. Methods of Record Keeping
a. Handwritten
b. Computer program
c. Accountant