V477

Accounts Payable

money owed by a company to its creditors.

Accounts Receivable

money owed to a company by its debtors

Current Liabilities

A company's debts or obligations that are due within one year. Current liabilities appear on the company's balance sheet and include short term debt, accounts payable, accrued liabilities and other debts.

Gross Profit

A company's revenue minus its cost of goods sold. Gross profit is a company's residual profit after selling a product or service and deducting the cost associated with its production and sale. To calculate gross profit: examine the income statement, take the revenue and subtract the cost of goods sold. Also called "gross margin" and "gross income".

Net Income - NI

A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company's income statement and is an important measure of how profitable the company is over a period of time. The measure is also used to calculate earnings per share. the bottom line"

Operating Margin

A ratio used to measure a company's pricing strategy and operating efficiency. Calculated as: Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Also known as "operating profit margin" or "net profit margin".

Long Term Liabilities

Long-term liabilities are liabilities with a future benefit over one year, such as notes payable that mature longer than one year. In accounting, the long-term liabilities are shown on the right wing of the balance-sheet representing the sources of funds, which are generally bounded in form of capital assets.

Income statement

Revenue Tax expense Post-tax profit or loss for discontinued operations and for the disposal of these operations Profit or loss Other comprehensive income, subdivided into each component thereof Total comprehensive income

Selling, General & Administrative Expense - SG&A (aka Operating Expenses)

aka operating expenses) Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company.

Balance sheet

assets, liabilities, a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.