Match the terms with their definitions

Terms: 1. balance sheet; 2. assets; 3. liabilities; 4. capital stock;

5. retained earnings; 6. operating profit

a) law & fin. 1) the state of being bound by law to settle a debt or to make good possible loss or damage. 2) the debt itself, or the amount of the loss or damage. opp. exemption; immunity. 3) accts. an amount owing by a business or other organization to other persons or concerns; debts of all kinds. 4) man. a person or thing bringing loss rather than gain.

b) 1. (USA) stk. exch. the entire shares of a joint-stock corporation (company), the holders of which together form the ownership of the concern.

2) econ. the total of all fixed capital invested in a country.

c) 1) accts. a statement showing the financial position of a business at a certain date. usu. the end of the financial year with the aim of giving in a single document some means of measuring the financial position of the business and of judging its creditworthiness on the one hand and its value as an investment on the other; it contains the balances of the ledger accounts separated into liabilities (mainly capital invested, creditors, reserves, e.g. for future taxation, and provisions, e.g. for staff pensions) and assets (mainly land and buildings, machinery, stock-in-trade, cash, investments, and amounts receivable from debtors. B.S. are presented in one of two forms:

account – form b.s. in two columns with liabilities on the left and assets on the right.

report – form b.s. the more modern form listing assets, liabilities and ownership capital one under the other.

d) 1. accts. & com. all things owned by a person or business and having some money value, esp. if they can be used to pay debts, produce goods, or in some way help the business to make a profit.

e) in a business, the amount by which the gross profit is greater than the operating expenses or overheads. It is represented by a credit balance in the profit and loss account. Sym. economic profit; operating earnings.

f) syn. retained profit, profit that has not been distributed or shared out among the shareholders, but has been retained, i.e. kept to allow the company to finance new investment without having to borrow money.