Finance - 5 Final Accounts
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Created by:
MrSpalding on November 23, 2010
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19 terms
Terms | Definitions |
|---|---|
 Appropriation account | Final section of profit loss account; how net profits of business are distributed |
| Balance sheet | Financial statement showing assets and liabilities at specific time |
| Book value | Value of an asset as shown on balance sheet |
| Capital employed | Value of all long-term sources of finance for business |
| Cost of goods sold (COGS/cost of sales/cost of stock sold) | direct costs of producing/purchasing stock that's actually sold |
| Depreciation | Fall in value of fixed assets over time |
| Final accounts (published accounts) | Annual financial statements all limited companies must report |
| First in, first out (FIFO) | stock value based on order it was purchased |
| Fixed assets | Items of monetary value not intended for sale for 12 months |
| Goodwill | Value of firm exceeds book value |
| Gross profit (trading profit) | Difference between sales revenue of business and direct costs |
| Intangible assets | Type of fixed asset that don't exist in physical form |
| Last in, first out (LIFO) | Method of stock valuation that uses most recent batches of stock first |
| Net assets (assets employed) | Calculate value of all assets minus long-term liabilities |
| Net profit | Surplus business makes after expenses are paid out of gross profit |
| Profit and Loss Account | Financial statement of a firm's trading activity over time |
| Shareholders' funds | Shows sources of finance of firm less its long-term liabilities |
| Trading account | Difference between firm's sales revenue and direct costs of trading |
| Window dressing (creative accounting) | Legal act of manipulating financial information to make results look flattering |
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