Term
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Definition
| Shareholders, managers, employers |
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Term
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Definition
| the government, suppliers, customers, pressure groups, investors |
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Term
| shareholders and the purpose of final accounts |
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Definition
- sales revenue
- profit
- retained profits
-dividents
how well business resources are used |
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Term
| managers and the purpose of final accounts |
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Definition
- revenue and profits
- retained profits
- decision making |
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Term
| employers and the purpose of final accounts |
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Definition
- profits after tax
- financial security
- possible pyrises |
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Term
| the government and the purpose of final accounts |
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Definition
- tax liabilities
- standarts and regulations
- decisions by managers |
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Term
| suppliers and the purpose of final accounts |
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Definition
cash position
trends in revenue and profit |
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Term
| customers and the purpose of final accounts |
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Definition
profits as a proportion of revenue
financial security |
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Term
| pressure groups and the purpose of final accounts |
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Definition
| issues such as ethics and sustainability |
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Term
| investors and the purpose of final accounts |
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Definition
historical financial performance
financial security |
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Term
| Statement of profit or loss definition |
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Definition
| financial statement which records business's profits or losses over a trading period |
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Term
| Statement of financial position |
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Definition
| financial statement which sets out the assets owned by the business and the depts (or liabilities) it owes to other organizations and individuals |
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Term
| Statement of profit or loss (profit-making) |
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Definition
Sales revenue
(cost of sales)
GROSS PROFIT
(expenses)
PROFIT BEFORE INTEREST AND TAX
(interest)
PROFIT BEFIRE TAX
(tax)
PROFIT FOR PERIOD
(dividends)
Retained profit |
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Term
| Statement of profit or loss (non-profit) |
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Definition
Sales revenue
(Cost of sales)
GROSS SURPLUS
(expenses)
SURPLUS BEFORE INTEREST AND TAX
(interest)
SURPLUS BEFORE TAX
(tax) = 0
SURPLUS FOR PERIOD
retained surplus |
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Term
| Statement of financial position (profit making) |
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Definition
Non-current assets
property
(accumulated depreciation)
total non-current assets
Current assets
Cash
Debtors
Stock
total current assets
Total assets
Current liabilities
Bank overdraft
Trade creditors
Other short-term loans
Creditors
total current liabilities
Non-current liabilities
borrowing-long term
mortgage
bank loans
total non-current liabilities
Total liabilities
Net assets
Equity
share capital
retained earnings
accumulated retained profit/earnings |
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Term
| statement of financial position (non-profit) |
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Definition
Non-current assets
property
(accumulated depreciation)
total non-current assets
Current assets
Cash
Debtors
Stock
total current assets
Total assets
Current liabilities
Bank overdraft
Trade creditors
Other short-term loans
Creditors
total current liabilities
Non-current liabilities
borrowing-long term
mortgage
bank loans
total non-current liabilities
Total liabilities
Net assets
Equity
retained earnings
accumulated retained profit/earnings |
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Term
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Definition
| something that a business owns |
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Term
|
Definition
| smth that is likely to be converted in cash within a year |
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Term
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Definition
| assets owned by business that it exoects to retain for one year or more. Used regularly, not bought for the purpose of sale |
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Term
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Definition
| Money invested by owners (shareholders) is a liability |
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Term
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Definition
| =current assets-current liablitities |
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Term
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Definition
| total assets - total liabilities |
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Term
| retained profit (earnings) |
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Definition
| profit accumulated during previous years trading and not paid to the owners. is invested into assets |
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Term
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Definition
| assets that have physical existence. land property etc |
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Term
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Definition
| assets that do not have a physical form. Patents, goodwill (customers base and reputation) |
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