Definitions of Components of Financial Statements Flashcards
What is Revenue
Sales (trading entity), Fees Received (service entity)
What Are Distribution Costs
All other revenues/income and gains
Examples (not limited to): interest received, dividends received, rent received, commission received, gain on sale of an item of property, plant and equipment
What are Distribution Costs
Distribution costs are expenses incurred in transferring ownership of finished goods to the consumer. Those expenses incurred through the promotion, storage, selling and delivery of the inventory for sale.
What are Administrative Expenses
Administrative expenses are costs associated with the administration of the entity as a whole
Examples (not limited to): Office Salaries/Wages, Rent, Insurance, Depreciation on Office Equipment, Telephone, Accountancy Fees, Discount Allowed (to debtors), Bad Debts, Doubtful Debts
Note a decrease in the allowance for doubtful debts is shown as a credit (negative expense) in administrative expenses.
What are Finance Costs
Finance costs arise from an entity financing its operations from external sources. Finance Costs are limited to different types of interest paid.
Examples: Interest on overdraft, Interest on Loan, Interest on Mortgage
What are Investments
Investments comprise shares in (eg ABC Ltd). The current fair value of the shares is (eg $7,200) which is their market value on 31 March 2….
Or
Investments are in Government Stock / a Fixed Term Deposit with an interest rate of x% and a maturity date of …
What are Non-Current Liabilities
All Liabiltities that are not current
What are Non-Current Assets
All Assets that are not current
What are Current Assets
All Assets that will be turned into cash or used up within the next accounting period.
What are Current Liabilities
All Liabilities that will be repaid within the next accounting period
What is Plant Property And Equipment
They are Tangable Items that are held to produce or supply goods or services
What is Equity
Residual interest of the assets after deducting Liabilities
A - L = Eq
What is an Intangable Asset
These Generate income over future accounting periods but cannot be physically touched. E.g Goodwill Patents Trademarks Copyright
What is Cost of Goods Sold
Expenses in getting the goods from the store
Bank, if positive Balance
Current asset
Petty Cash
Current Asset
Accounts Recievable
Current Asset
Prepayments
Current Asset
Accrued Revenue
Current Asset
Closing Inventories
Current Asset
Equipment
Plant, Property and Equipment
Buildings
Plant, Property and Equipment
Property
Plant, Property and Equipment
Vehicles
Plant, Property and Equipment
Plant (Machinery)
Plant, Property and Equipment
Shares in other companies
Investment Assets
Long term monies held in investment accounts
Investment Assets
Debentures
Investment Assets
Goodwill
Intangible Assets
Patents
Intangible Assets
Royalties
Intangible Assets
Research and Development costs
Intangible Assets
Bank Overdraft
Current Liability
Accounts Payable
Current Liability
Accrued Expenses
Current Liability
Revenue Recieved in advance
Current Liability
Loans - Current
Current Liability
Gst
Current Liability
Loans (Next accounting Period)
Non - Current Liabilites
Hire Purchase of PPE
Non - Current Liabilites
Mortgages
Non - Current Liabilites
Debentures
Non - Current Liabilites
