Definitions of Components of Financial Statements Flashcards
(15 cards)
Revenue/Income
Primary Source of Income e.g. Sales for Fees
Sales Returns
A Negative Income-Subtract From Sales
Distribution Costs
Expenses incurred in transferring ownership of finished goods to the consumer. Those expenses incurred through the promotion, storage, selling and delivery of the inventory for sale
Cost of Goods Sold
Expenses incurred in acquiring the goods for sale
Administrative Expenses
Administrative expenses are costs associated with the administration of the entity as a whole.
Finance Costs
Arise from financing its operations from external sources. Finance Costs interest paid on borrowing.
Current Asset
Asset that will be turned into cash or used up within the next accounting period.
Non-Current Assets
Any asset that is not a current asset
Current Liability
Any liability that must be repaid within the next accounting period
Non-Current Liability
Any liability that is not a current liability
Equity
The residual interest in the assets of the business after deducting all liabilities A-L=Eq
Advanced Def of Current Asset
An entity shall classify an asset as current when:
(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) it is cash or a cash equivalent (as defined in NZ IAS 7).
Property, Plant and Equipment
(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
(b) are expected to be used during more than one period.
Investments
All investments, such as shares, government stock, term deposits, will be classified as non-current assets
Intangible Assets
These assets you cannot touch but generate income for the business e.g. goodwill,patents,copyright,trademarks
