financial terminology Flashcards
why does enterprises keep track of their revenue and costs?
in order to prepare financial statements that they can analyse to understand how well they are performing.
capital
money used to set up and then grow the enterprise
what does the net current assets also known as?
working capital
net current assets
value of current assets - current liabilities
what are debtors also known as?
accounts receivable
debtors
individuals or enterprises that owe money to the enterprise
fixed assets and current assets
things that the enterprise owns
current and long-term liabilities
what the enterprise owes (including money) which must be paid back within a certain time period
retained profit
net profit used to help the enterprise grow
net profit
gross profit - expenses
expenses
indirect costs of the enterprise
gross profit
sales revenue - cost of sales
cost of sales
costs of producing goods
equity
the value of the shares issued by an enterprise
turnover (revenue)
total revenue received by an enterprise in a given financial period
what are creditors also known as?
trade payables
what are long-term liabilities also known as?
non-current liabilities
what are the 6 financial terminology that appears in the profit and loss account ?
sales revenue
cost of sales
gross profit
expenses
net profit
retained profit
what are the 7 financial terminology that appears in the statement of financial position?
fixed assets
current assets
owner’s capital
current liabilities
long-term liabilities
debtors
creditors
