GENERAL Flashcards
1
Q
ordinary shares
A
- voting right
- paid out of the profits left after paying the preference shareholders
2
Q
rights issue
A
- offer shares to existing shareholders
3
Q
Capital reserves
A
- share premium + revaluation reserves
- owed to shareholders but not as a dividend
4
Q
revenue reserves
A
- profits earned by the company
- used to settle the amount owing to shareholders as dividends
5
Q
provision
A
- liability of uncertain timing & amount
6
Q
contingent liability
A
- possible liability
7
Q
contingent asset
A
- possible asset
8
Q
capital expenditure
A
- purchase of non current assets
- expenses to enhance the asset
9
Q
revenue expenditure
A
- expenses from running the business
10
Q
non current asset register
A
- records of the non current assets held by the company
- used for internal use
11
Q
subsidiary
A
- controlled by another company
- more than 50%
12
Q
associate
A
- another company have significant influence on the company
- between 20 - 50%
13
Q
development expenditure
A
- is capitalised
- not written off as an expense
14
Q
Expenses in p/l include
A
- amortisation
- lost on disposal of nca
