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Key Terms

  • Accounting: The process of identifying, measuring, recording, and communicating financial information
  • Assets: Resources owned by a business that have economic value
  • Balance Sheet (Bilan): Financial statement showing assets, liabilities, and equity at a point in time
  • Creditor: Entity that lends money or extends credit to a business
  • Equity (Capitaux Propres): Owner's interest in the business; assets minus liabilities
  • Expert-Comptable: Certified public accountant in Luxembourg, member of OEC
  • Fiduciaire: Licensed accounting firm in Luxembourg providing accounting and tax services
  • Financial Accounting: Accounting focused on external users, following standardized rules
  • Income Statement (Compte de RĂ©sultat): Financial statement showing revenues, expenses, and net income
  • Investor: Individual or institution with ownership interest in a business
  • Liabilities (Passif): Obligations owed by a business
  • Managerial Accounting: Accounting focused on internal users, flexible and forward-looking
  • Ordre des Experts-Comptables (OEC): Professional organization for certified public accountants in Luxembourg
  • Plan Comptable NormalisĂ© (PCN): Luxembourg's standardized chart of accounts (PCN 2020 is current)
  • Registre de Commerce et des SociĂ©tĂ©s (RCS): Luxembourg's commercial register where companies file annual accounts
  • Stakeholder: Any party with an interest in a business (owners, creditors, employees, etc.)