An asset account that increases when good or services are sold on credit. It also occurs in good or services are billed monthly.

A bookkeeping or accounting account is not the same as a bank account. It is a record of increases and decreases associated with a specific resource or activity. Like Supplies is an an expense account. Consulting Income would be an income account.

Current assets divided by current liabilities. Obviously you want a number greater than one — the bigger the better.

Those obligations that management expects to fulfill during the next fiscal year.

Cash or other resources that management expects to convert to cash or consume during the next fiscal year. A bank account is a current asset.

the excess of gross profit over operating expenses.

The amount of profit earned by a business during a fiscal period (ie, month, quarter or year).

the ratio of net income to sales (also called return on sales).

The ratio of gross profit to sales revenues; it measure the efficiency in the production or purchase of goods or services for sale.

The difference between the price a seller receives for goods or services and the total cost to the seller of all resources consumed in developing, producing, and selling those goods or services during a particular period.