BUSINESS TERMS — BILKUL SIMPLY

Making Business Jargon Bilkul Simple

Bilkul Bazaar | Sunday Special

A new weekly column from Bilkul Bazaar, this is our simple attempt to make commonly used business terms easy to understand—without complicated definitions, technical language or financial jargon.

Know the Term. Understand the Business.

ASSET
Anything a business owns that has economic value—such as cash, property, machinery or inventory.
Example: A bakery’s ovens and delivery vehicles are its assets.

LIABILITY
Money or obligations that a business owes to others.
Example: A bank loan taken by a company is a liability.

EQUITY
The value that belongs to the owners after subtracting what the business owes from what it owns.
Example: If a business owns ₹50 lakh and owes ₹20 lakh, its equity is ₹30 lakh.

TURNOVER
The total value of sales made by a business during a particular period.
Example: A shop selling ₹10 lakh worth of goods in a year has an annual turnover of ₹10 lakh.

CASH FLOW
The movement of money coming into and going out of a business.
Example: Customer payments bring cash in, while salaries and rent take cash out.

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