natural resources: Assets that are physically consumed or waste away, such as oil, minerals, gravel, and timber.

negotiable (instrument): This refers to the right to transfer by endorsement and delivery. A check made payable to you is a negotiable instrument; you can endorse and it transfer it to another.

net assets (owners' equity): The ownership interest in the assets of an entity; equal total assets minus total liabilities.

net income (or net loss): A measure of the overall performance of a business entity; equal to revenues minus expenses for the period. This is most frequently stated for periods of operations such as "net income for the month ending (date)"; "net income for the quarter ending (date)"; or "net income for the year ending (date)." See also gross profit.

net loss: This is the flipside of net income. When the total expenses for a period of operations exceed the income, the result is a net loss.

net operating loss: A loss from operating a business. For income tax purposes, a net operating loss may be carried back five years to offset prior income and get a refund of taxes paid in those years. Any remaining unused loss may be carried forward to benefit future tax years. See also carryback.

net proceeds: The difference between maturity value and discount when a note receivable is discounted.

net realizable value: The selling price of an item less reasonable selling costs.

net realizable value of accounts receivable: The net amount that would be received if all receivables considered collectible were collected; equal to total accounts receivable less the allowance for uncollectible accounts; also called the book value of accounts receivable.

net sales: Gross sales less sales discounts and sales returns and allowances.

net tax liability: The amount of tax computed by subtracting tax credits from the gross tax liability.

nominal accounts: Accounts that are closed to a zero balance at the end of each accounting period; temporary accounts generally appearing on the income statement.

noncash items: Items included in the determination of net income on an accrual basis that do not affect cash; examples are depreciation and amortization.

noncash transactions: Investing and financing activities that do not affect cash; if significant, they are disclosed below the statement of cash flows or in the notes to the financial statements.

nonoperating assets: Investment and other assets not used in a business but held to earn a return separate from operations.

nonoperating expense or income: These are expenses and revenue derived from sources other than the normal business function of a company; for example, investment interest income generated by the installment sale of surplus real estate. Since lending money is not a normal part of the company's business, the interest income is non-operating. See also operating expense.

non-probate property: Property that passes to heirs outside of the probate court, such as property in trust, certain life insurance proceeds, or property held in joint tenancy with rights of survivorship. Property passing to heirs under your will is subject to probate and is referred to as probate property.

nonprofit corporation (entity): An entity formed for charitable purposes, or any corporation where the shareholders do not share in the profits. Under the income tax laws, many of these entities are referred to as Section 501(c)(3) organizations. See also charitable organizations.

no-par stock: Stock that does not have a value printed on the face of the stock certificate.

note payable: A debt owed to a creditor, evidenced by an unconditional written promise to pay a certain sum of money on or before a specified future date.

note receivable: A claim against a debtor, evidenced by an unconditional written promise to pay a certain sum of money on or before a specified future date.

notes to financial statements: Explanatory information considered an integral part of the financial statements.

NSF (not sufficient funds) check: A check that is not honored by a bank because of insufficient cash in the customer's account.

number of days' of inventory on hand: An alternative measure of how well inventory is being managed; computed by dividing 365 days by the inventory turnover ratio.

number of days' sales in receivables: A measure of the average number of days it takes to collect a credit sale; computed by dividing 365 days by the accounts receivable turnover.

number of days' sales invested in working capital: An alternative measure of the amount of working capital used in generating the sales of a period; computed by dividing 365 days by the working capital turnover.