17 - Interpretation of financial statements Flashcards
cost of sales
the direct costs associated with production and sale of a product or service
other operating expenses
- admin costs
- salaries
- expenses claims
exceptional expenses
costs not associated with direct business activity such as one off purchases
net profit
profit for the year, what a business has left to reinvest or return to shareholders after tax
non current assets
fixed assers used to operate the buisness such as land or patents
current assets
assets that the business epxects to sell or use within the year
recievables
debts that the buisness anticipates will be paid in the next year
current liabilities
payments due within the year
net current assets
total assets - total liabilities
non current liabiltiies
debts that the business does not expect to pay within the year
provisions
money set aside in anticipation of a debts
