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Glossary of Important Financial Terms

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Term Definition
Balance Sheet

Refers to a financial table which lists the values of a company's assets, liabilities and shareholders' equity. A "strong" balance sheet usually refers to one which has a low level of liabilities relative to assets and/or a low level of accounts receivables relative to total assets. A high level of inventory as a proportion of assets is also often seen as a sign of a "weak" balance sheet.

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