Glossary
Bookmark this page. Later lessons refer back to these terms.
| Term | Meaning |
|---|---|
| Accrual basis | Records income when earned and expenses when incurred |
| Accounts payable (AP) | Bills the program owes but has not paid |
| Accounts receivable (AR) | Money owed to the program |
| Aging report | A list of unpaid amounts grouped by how long they have been outstanding |
| Allowance for doubtful accounts | An amount set aside for receivables the program does not expect to collect |
| Asset | Something the program owns or is owed |
| Break-even | The enrollment level where revenue equals expenses |
| Budget v. Actual | A report comparing planned and actual results |
| Cash basis | Records income and expenses when cash moves |
| Current ratio | Current assets divided by current liabilities |
| Depreciation | Spreading the cost of a long-lasting asset over its useful life |
| Equity / net assets | Assets minus liabilities |
| Fixed cost | A cost that does not change with enrollment |
| Liability | Something the program owes |
| Net income | Revenue minus expenses |
| Variance | The difference between budget and actual |
| Variable cost | A cost that changes with enrollment |