HMASAC4150 - Annexes: Glossary
| A | B | C | D | F | G | N | O | P | S |
| Term | Description |
A | |
| Administrative Expenses | Relates to expenses incurred by the business, in addition to direct trading expenses on the profit and loss account. |
| Auditor
| Has responsibility for auditing the prepared accounts and making a judgment as to the credibility thereof. |
B | |
| Balance Sheet
| Is a snapshot of the business assets and liabilities at a moment in time, i.e. the financial year-end. |
C | |
| Capital
| The amount of money introduced into the business. |
| Creditors
| This represents the monies owed by the business at the date the accounting year-end. |
| Current Assets
| Can be converted to cash in the course of business. |
| Current Liabilities
| Amounts owed by the business payable within 1 year. |
D | |
| Debtors
| This represents the monies owed to the business at the date the accounting year-end. |
| Directors
| Employees of the business. |
| Director’s remuneration
| This is the wages paid to the directors as employees of the business. |
| Dividends
| Payments made to the shareholders, after profit, as a reward for investing in the company. |
| Drawings | Are the money taken from the business by the sole-proprietor or partners for their own use. This value will also include any goods removed from the business for personal use. |
F | |
| Fixed assets
| Assets acquired for the use of the business, but not for resale. |
G | |
| Gross profit
| This is the trading profit of the business, i.e. sales less cost of goods sold. |
N | |
| Net profit
| Is the profit left to the business after all expenses have been deducted. |
O | |
| Other Income
| The following are examples of other income received and the implications with regards to credibility. |
P | |
| Profit and Loss Account (P&L)
| Shows the transactions of a business over a period of time. |
S | |
| Shareholders
| The actual owners of the business. |
