3.4 final accounts Flashcards
(10 cards)
What are the final accounts in finance and accounting?
Final accounts are financial statements that provide a summary of the financial performance and position of a business over a specific period.
What is the Statement of Profit and Loss?
The Statement of Profit and Loss is a financial report that outlines the income, expenses, and profitability of a business during a specific period.
What does Gross Profit represent?
Gross Profit is the income remaining after subtracting the costs of making and selling products from total sales.
What is Profit Before Interest and Tax?
Profit Before Interest and Tax is the income left after removing all operating expenses from total sales.
What is Profit Before Tax?
Profit Before Tax is the income remaining after all expenses and interest have been deducted, but before tax is applied.
What is Profit for the Period?
Profit for the Period si the total income after al expenses, interest, and taxes have been subtracted; for non-profits, it is referred to as a surplus.
What does the Statement of Financial Position represent?
The Statement of Financial Position outlines a company’s assets, liabilities, and net assets at a specific point in time.
What are retained profits?
Retained profits are profits that have been earned ni previous trading periods and have not been distributed to the owners of the business.
What distinguishes tangible assets from intangible assets?
Tangible assets are physical objects like land, property, and machinery, while intangible assets have no physical form, such as brands and goodwill.
What are examples of intangible assets?
Examples of intangible assets include items like patents, trademarks, and goodwill.
