Accounting & Finance
Vat %
17.5%
Dividend
A dividend is a payment made per share, to a company's shareholders by a company,
Journal
A journal is a chronological record of transactions and is the first place that transactions are recorded. It is often referred to as a book of original entry.
Overhead
An expense that cannot be attributed to any one single part of the company's activities.
Tangible
Anything composed of matter, that is physical in nature, that can be touched or measured in terms of physical properties.
ASSET
Anything owned that is of value and can be sold or otherwise disposed of
Intangible
Anything that exists, but is not physical in nature and can only be measured in terms of the results of its presence or application.
Partnerships
Business organizations in which two or more persons share responsibilities, costs, profits, and losses.
Break-Even is
Company goes from making a loss to making a profit.
Stock Turnover Ratio =
Cost of Sales/Average Stock
Vairable Costs
Costs which vary depending on output.
Fixed Costs
Costs you pay even when no sales are made.
Current Ratio
Current Assets/ Current Liabilities
working capital
Current assets less current liabilities, representing the required investment, continually circulating, to finance stock, debtors, and work in progress
Total Cost (Break-even)
Fixed Cost + Vairable Cost
Gross Profit
Gross Profit/Sales Revenue
asset turnover
Measure of operational efficiency - shows how much revenue is produced per £ of assets available to the business
ROCE
Net Profit/Capital Employed
Net Profit
Net Profit/Sales Revenue
Cash flow statement
One of the three essential reporting and measurement systems for any company
Pre-payments
Paid in advance for goods or services
Debtors
People who owe your company money/
Fixed Assets =
Premises, Land & Buildings, Plant and machinery and Motor Vehicles
Accruals
Revenue or expense amounts that have been accumulating for the business but have not been recorded in the journal(s).
Hire Purchase
Spreading the payments of a purchase over a period of time
reserves
The accumulated and retained difference between profits and losses year on year since the company's formation.
share capital
The balance sheet nominal value paid into the company by shareholders at the time(s) shares were issued.
Cash flow
The movement of cash in and out of a business from day-to-day direct trading and other non-trading or indirect effects, such as capital expenditure, tax and dividend payments.
Creditors
Those to whom the firm owes money for goods or services it has had but not yet paid for.
Shareholders
Those who own shares in a company or business.
VAT
Value Added Tax
Trial Balance
a balance of debits and credits in double-entry bookkeeping
Liability
a debt; something disadvantageous
Depreciation
a decrease in price or value
Trade Discount
a discount from the list price of a commodity allowed by a manufacturer or wholesaler to a merchant
Statement
a document showing credits and debits
Quotation
a documnet stating of the current market price of an item
Balance Sheet
a financial statement that reports assets, liabilities, and owner's equity on a specific date
Profit and Loss
an account compiled at the end of an accounting period to show gross and net profit or loss
Purchases
an accounting presented to the court in final settlement of a decedent's estate, Items purchased by the company for the purpose of resale.
Discount
an amount or percentage deducted
Cash Budget
an estimate of the actual money received and paid out for a specific period
Order form
displays fields for the description of items ordered as well as types of payment information, including blank fields for entering items, quantities, and prices
Ratio analysis
involves the methods of calculating and interpreting financial ratios to analyse and monitor the companies performance.
Credit note
provides information on goods which have been returned by the buyer
Invoice
send an bill to
Venture Capital
wealth available for investment in new or speculative enterprises
