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 Résultat): 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 Normalisé (PCN): Luxembourg's standardized chart of accounts (PCN 2020 is current)
- Registre de Commerce et des Sociétés (RCS): Luxembourg's commercial register where companies file annual accounts
- Stakeholder: Any party with an interest in a business (owners, creditors, employees, etc.)