I
Income Statement
A financial statement showing profit as the difference between income and expense; also called a "P&L."
Intangible Asset
An asset which has a value but without substance. Goodwill, patents, and trademarks are examples of intangible assets.
L
Letter of Credit
An agreement to honor demands for payment under certain conditions.
Limited Liability Company (LLC) or Professional Limited Liability Company PLLC)
A legal form of organization which functions like a partnership, but with liability similar to a corporation. A PLLC is a limited liability company which is operated by professionals--doctors or attorneys, for example.
Limited Partner
A partner who is not active in the day-to-day business of a partnership, but who has a financial share in the partnership.
Line of Credit
An agreement between a bank and creditor for a specific amount of money to be used as needed by the creditor.
Liquidation Value
Determination of the value of a company based on the assumption that all assets must be sold (liquidated).
Liquidity
Ability of assets to be converted to cash; the ability of a business to meet its debts with its assets.
Leverage
The use of credit to finance a project.
Liability
An amount that is owed; liabilities are referred to as "payables."
Liquidation
Converting assets into cash; a form of bankruptcy in which assets are sold.
Long-term
Expected to last into the future; usually expected to last over a year.
