Final accounts Definitions Flashcards
Management
the people in an organisation that plan, organise, coordinate and control the activities in the business
Statement of profit or loss/Income statement
a statement that records sales revenues and costs of a business to determine the net profit and distribution of profit
Statement of financial position/balance sheet
a statement that records a business’s assets, liabilities and equity
Equity
the value of shares issued by a company
Debtor
a person or business that has bought products on credit from another business, but has not yet paid for the products
Non-current(fixed) liabilities
funds that a company owes individuals/institutions that are paid back over a period of time that is greater than one year
Current liabilities
funds that a company owes individuals/institutions that are due within one year
Trade creditors
suppliers which have supplied a business with goods/services that the business has not yet paid for(i.e. supplied on credit)
Intangible assets
non-physical items of value owned by a business that have the lifespan of more than a year
Copyright
legal protection that gives and author or creator the exclusive right to reproduce work for a speciifc period of time
Trademark
a form of intellectual property that refers to a word, symbol or phrase that identifies a specific product and distinguishes it from other products
Goodwill
a type of intangible asset which represents the value of a business’s brand, customer relationships, proprietary technology and other factors that contribute to its earning potential
Depreciation
the loss of value of a fixed asset over time
Residual value
the estimated value of a fixed asset at the end of its useful life
