Final Accounts Flashcards
Other payables
These are accruals, money owing, such as outstanding rent still due.
Statement of cash flows
This is the cash flow statement showing all the money flowing into and out of the business.
Costs of sales
Opening inventory, add purchases, less closing inventory. This shows how much it cost the business to bring in the goods to sell.
Current liabilities
These are creditors who will have to be paid up within 12 months.
Equity
This is the money invested by its owners/shareholders.
Financial statements
These are the final accounts of the business.
Non-current assets
These are assets which stay in the business for a long period of time. Land, buildings and machinery.
Finance costs
This is any interest payable on loans.
Property
This is the land and buildings owned by the business.
Bank loan.
A loan repayable over more than 12 months.
Bank overdrafts and loans
Short term loans, less than 12 months.
What is the formula for ROCE?
Operating profit/capital employed x100
What is the formula for net profit margin?
Net profit/revenue x100
What is the formula for current ratio?
Current assets/current liabilities
What is the formula for gearing?
Long term loans/capital employed.
