3.4 - Final Accounts

final accounts

published accounts of an organization made available to and used by different stakeholder

statement of profit or loss

shows the profit or loss of a business over a trading period

COS

cost that a business can easily connect to the goods or service it has produced

expenses

cost that affects the business, not just a good or service

profit

What a profit making business earns after all expenses have been paid from the firms gross profit

surplus

What a nonprofit business earns after all expenses have been paid from the firm gross surplus

statement of financial position (Balance Sheet)

snapshot of the value of a firm at a point in time

assets

Items of monetary value that are owned by a business

Depreciation

The fall in the value of a fixed asset overtime, mainly due to wear and tear

non-current assets

Assets use for business operations and are likely to be used for more than 12 months

current assets

Assets that are likely to be converted to cash within 12 months or less

liability

Legal obligation of a business to pay its lenders or suppliers at a Later date

Current Liability

debt that must be settled within 12 months

non-current liability

Debts that are due to be repaid after 12 months