Glossaire

Accelerated payments are a strategy for saving interest costs by repaying a loan sooner, through larger, more frequent or extra payments.

Accounting Standards for Private Enterprises (ASPE) are widely used accounting principles for private companies in Canada.

Money a business owes to suppliers for goods or services already received.

Money owed to a business by its customers for goods or services already delivered.

An accounting method that records revenue when earned and expenses when incurred, not when cash moves.

Accrual cash accounting is an accounting method that records revenue and expenses when they are earned or incurred, regardless of when the actual cash transaction occurs.

Accrued expenses are costs a company has incurred, but has not yet received an invoice.

Interest that has built up on a balance but has not yet been paid.

The acid-test ratio (or quick ratio) is calculated by dividing a company's quick assets by its current liabilities. It helps assess a company's ability to pay its short-term obligations.

Administration expenses are the costs of running a business that are not directly tied to production or sales activities, such as office supplies and salaries for administrative staff.

In asset-based lending or factoring, the percentage of an asset’s value that a lender will advance (for example, 80% of eligible invoices).

An advisory board is a group of experts who provide informal guidance to a company's management team to help improve the business.

A written statement confirmed by oath or affirmation, sometimes used to verify facts in a transaction.

The gradual paydown of a loan balance through scheduled payments over time.

The loan amortization period is the length of time required to repay a loan in full, including both its principal and interest.

A table showing each payment’s split between principal and interest over the life of a loan.

An angel investor is a wealthy individual who invests personal money in early-stage companies.

A standardized way to express borrowing cost over a year, including interest and certain fees.

A professional estimate of an asset’s value, often used to support financing.

Anything of value owned by a business, such as cash, equipment, or receivables.

An asset-backed security is a type of investment that's backed by a pool of income-generating assets.

Financing primarily secured by business assets like receivables, inventory, or equipment.

Assets refer to everything a company owns, from cash to equipment to intellectual property. On a balance sheet, they are divided into current and long-term assets.

Audited, accountant-reviewed, and notice-to-reader are three types of financial statements used to confirm a company's financial status.

The average collection period is the average number of days it takes a business to collect and convert its accounts receivable into cash.