P 40, 41 Accounting

revenue

income / turnover / sales / the top line

Cost of goods sold

(=direct costs) includes manufacturing costs, salaries of manual (blue collar) workers

Operating expenses

(=indirect costs / overhead) includes salaries of sales and office staff, marketing costs, utility bills

Non-operating income

includes profits from investments in other companies

EBITDA

stands for Earings Before Interest, Tax, Deprectiation and Amortization

Earnings

profits/ the bottom line

Depreciation

refer to loss in value of a tangible asset (eg a vehicle)

Amortization

refer to loss ina value of a intangible asset (the purchase of licence or trademark)

Interest

refer to money paid to the bank for loans (or received from the ban for cash balances)

Dividents

is money paid to shareholders

Retained profit

is transferred to the Balance sheet, where it joins the amounts from previous years

accounts receivable

is the amount owed to the business by customers (debtors)

Inventory

is the value of raw materials & stock

Currents assets

may also include 'marketable securities' (= shares intended for disposal within one year)

Fixtures

part of building that cannot be moved such as lights

Fixed assets

may also include long-term financial investments

Intangible assets

include patents, trademarks & 'goodwill'(reputation, contracts and expertise of companies that have been bought) (

Bank debt

(=loan capital) also includes any overdraft (= temporary negative balance)

Account payable

is money owed to suppliers

Accrued

items are those where expense has been incurred, but money is not yet paid. 'Accrued salaries' typically includes future bonuses

Provision

amounts set aside for anticipated one-time payments that are not part of regular operations - perhabs a lawsuit or compensation package for employees being laid off

mortgage

is a long-term bank loan to buy a property

principal

amount raised by issuing the bonds

share capital

(= common stock, AmE) is amount raised at initial flotation on the stock market

Retained profit

(=reverses / Retained earings). The figure showing here is more than 45,000 transferred from income statement because it is an amount accumulated over several years