Thẻ ghi nhớ: Unit 6: Financial Statements | Quizlet

comprehensive income

is the change in equity (net assets) of an entity during a period from transactions and other events and circumstances from non owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

net current assets

the amount by which current assets exceed current liabilities.

General reserve

an amount of profit that a company sets aside for future needs, but without a specific purpose.

STRGL

any gains and losses that are not included in the profit and loss account, such as the revaluation of fixed assets

invoice

the written record of a payment due, which is sent to the customer before payment

irregularities

Defects, failures of mistakes

notes to the accounts

additional information added at the end of the accounts to give a full understanding of the company's situation

receipt

the written record of a payment made, which is given to the customer after payment

expenses

are outflows or other uses of assets or incurring of liabilities during a period from delivering or producing goods or rendering services, or carrying out other activities that constitute the entity's ongoing major or central operation.

investment by owners

are increases in net assets of a particular enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interest (or equity) in it.

liabilities

are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

losses

are decreases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from expenses or distributions to owners.

revenues

are inflows or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.

consolidated affiliates

The holding company owns a minority interest (less than 50%), but the accounts are nevertheless consolidated.

total liabilities

The total legal obligations of a company to pay other parties.

common stock

ownership in a company that gives shareholders voting rights and a claim on profits after other obligations are pai

current receivables

Amounts that will be collected in the normal course of business within one year

retained earnings

Profit which is not paid out to shareholders in the form of dividends, but instead is kept by the company to reinvest or pay off debts

accumulated gains

total gains earned over time that are retained in shareholders’ equity rather than distributed as dividends.

surplus

occurs when income is greater than expenditure in a non-profit organization.

total sales revenue/turnover

the total amount of money received during a specific period.

EBIT

earnings before interest and tax

net profit/bottom line

the amount of money a company earns after deducting all expenses from total revenue

cash flow statement

This gives details of cash flows — money coming into and leaving the business

funds flow statement

The cash flow statement shows how effectively a company generates and manages cash

bank reconciliation

the process of comparing the actual state of the bank account with the bank nominal code in the accounts

cash in hand

the amount of liquid equity held by an entity at a certain point of time

cross-check

verify by comparing two sets of data

draft

a first version

ledger control

a process in which totals from subsidiary nominal accounts are entered into a control account to make it easier to interpret the data

ledgers

accounting books in which accounts were prepared

meticulously

very careful, paying attention to every detail

retain

keep in one's possession

to post

enter or record (a financial transaction)

assets

are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

distribution to owners

are decreases in net assets of a particular enterprise resulting from transferring assets, rendering services, or incurring liabilities to owners. They decrease ownership interest or equity in an enterprise

equity

is the residual interest in the assets of an entity that remains after deducting its liabilities. In a business entity, it is the ownership interest

gains

are increases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from revenues or investments by owner.

profit and loss account

This is a financial statement which shows the difference between the revenues and expenses of a period

cost of sales/cost of goods sold

the costs associated with making the products that have been sold, such as raw materials, labour and factory expenses

EBITDA

earnings before interest, tax, depreciation and amortization