Business Chap30 definition 0.0 / 5 ? BusinessAccounting FundamentelASCIE Created by: ngaelsaCreated on: 31-03-17 02:01 Income statement records the revenue, costs and profit (or loss) of a business over a given period of time 1 of 21 Revenue the total value of sales made during the trading period 2 of 21 Cost of sales this is the direct cost of the goods that were sold during the financial year. 3 of 21 Dividends the share of the profits paid to the shareholders as a return for investing in the company 4 of 21 Low-quality profit one-off profit that cannot be easily repeated 5 of 21 High-quality profit profit that can be easily repeated 6 of 21 Statement of financial position (balance sheet) an accounting statement that records the values of a business's assets, liabilities and shareholoder's equity at one point in time 7 of 21 Asset an item of monetary value that is owned by the business 8 of 21 Liability a financial obligation of a business that is required to pay in the future 9 of 21 Share capital the total value of capital raised from shareholders by the issue of shares 10 of 21 Non-current asset (fixed asset) Asset to be kept and used by the business for more than 1 year 11 of 21 Current asset assets that are likely to be turned into cash before the next balance-sheet date 12 of 21 Intangible asset items of value that do not have a physical presence, such as patents, trademark and current asset 13 of 21 Current liabilities debts of the business that will usually have to be paid within 1 year 14 of 21 Non-current liabilities value of debts of the business that will be payable after more than 1 year 15 of 21 Trade receivable (debtor) the value of payment received from customers who have bought goods on credit 16 of 21 Accounts payable (creditor) value of debts for goods bought on credit payable to supplier, also known as "trade payable" 17 of 21 Intellectual capital or property the amount by which the market value of a firm exceeds its tangible assets less liabilities 18 of 21 Goodwill arises when a business is valued at or sold for more than the balance-sheet value of its assets 19 of 21 Cash-flow statement record of cash received by a business over a period of time and the cash outflows from the business 20 of 21 Window-dressing presenting the company accounts in a favorable light-to flatter the business performance 21 of 21
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