Definitions Flashcards
ASSETS
Tangible or intangible valuables of a business etc.
→ Eg. Buildings, land.
CURRENT ASSETS
Physical or financial items.
→ Eg. Physical cash, cash in bank
NON-CURRENT ASSETS
Business property.
→ Eg. Building, Land, Vehicles, retained profits.
CURRENT LIABILITIES
Short term debts paid within 12 months
NON-CURRENT LIABILITIES
Long-term debts paid over 12 months
ACCOUNT RECEIVABLE
Debtors that owe the business money paid at end of credit period
STOCK/INVENTORY
Store items in a warehouse for sale to customers
ACCOUNTS PAYABLE
Short term debts attended/funded within 12 months
OWNER’S EQUITY
Amount of Owner’s money invested in the business
CAPITAL
Amount of money injected into the business by its owner(s)
RETAINED PROFITS
A portion of a year’s profit injected into the business
BANK OVERDRAFT
Short-term facility, negotiated with the bank, allowing business owners to overdraw if necessary
MORTGAGE
A secured, long term loan contract with a financial institution
SALES REVENUE
Amount of money earned after selling goods and services
TOTAL QUALITY MANAGEMENT
Commitment of continuous improvements by sharing responsibility amongst all members
QUALITY CONTROL
Inspections for issues during production process
QUALITY ASSURANCE
System used for business to achieve required standards in production and service
QUALITY MANAGEMENT
Strategy used to make sure product meets customers’ expectations
