Finance Revision Notes

Accrued Income

Income that has been earned but not yet received.

Accrued Expenses

Expenses that have been incurred but not yet paid.

Income Statement

A financial statement showing the revenues and expenses for a specific period.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time.

Liability

An obligation that a company owes to another entity, which must be settled in the future.

Asset

Resources owned by a business that have economic value.

Prepaid Expenses

Payments made in advance for services or goods to be received in the future.

Income Received in Advance

Money received by a business for services that have not yet been provided.

Going Concern

The assumption that a business will continue to operate in the foreseeable future.

Current Financial Year

The period for which financial statements are prepared, often covering 12 months.