Module 10A: Managing Woodlot Finances: Planning and Investment Guide

Glossary of Key Terms - Module 10A

Absentee Owner: A woodlot owner owning a woodlot in one location with a place of residence in another.

Accounts Payable: Amounts which a business owes its creditors for goods and services.

Accounts Receivable: Amounts which a business expects to collect from its customers for goods and services sold to them on credit.

Aerial Photograph: Color photographs (10" x 10") that are taken from a fixed-wing plane. They are generally taken by the province of Nova Scotia every ten years.

Aggregates: Refers to gravel, stone, slate, etc.

Asset: Economic resources owned by a business.

Balance Sheet: A financial statement which shows the financial position of a business entity by summarizing the assets, liabilities and equity at a specific date.

Budget: A financial forecast.

Cash Flow: Forecast of cash being received and paid out by a company.

Edge: Refers to the edge of forest stands, fields, swamps.

Extraction Cost: The cost of moving timber from the stump to a road system.

General Journal: A book of original entry, a day-to-day entry for each transaction in a business.

Income Statement: A statement of income and expenses.

Mortgage: A legal agreement between the lender and borrower that states the obligations of both parties in regards to payback terms, interest, defaults, etc.

Selection Cut: A partial cut in uneven-aged stands that encourages natural regeneration.

Shelterwood Cut: A partial cut in even-aged stands that encourages natural regeneration.

Stand: A group of trees with similar characteristics, such as species, age, height, volume, etc. Stands can range in size from <1 hectare to >100 hectares.

Stereoscope: An instrument with a set of mirrors that creates a three dimensional image over two overlapping photographs.

Stumpage: A royalty paid to a woodlot owner by a contractor for the right to harvest the resource (fibre)