• Accounts Payable

    Monies due to suppliers for goods or services they have invoiced.

  • Accounts Receivable

    Monies owed by customers for goods or services that we have invoiced.

  • Accrued Expenses

    The money value of goods or services that the company has already consumed or received but for which no invoice has yet been received.

  • Accrued Revenue

    The value of a good or service that has been delivered to a customer but for which an invoice has not yet been sent.

  • Advances from Customers

    Monies paid by customers for goods or services that have not yet been delivered to them.

  • Advances to Suppliers

    Advances to Suppliers Monies paid to suppliers for goods or services that have not yet been received in full.

  • Amortization

    Amortization Paying off a debt. Partly or in full.

  • Annual Report

    The document containing an income statement, a balance sheet, and a Board of Directors’ Report in which the most important events for the company during the year are reported along with certain other legally required items of information. The Board of Directors and the Chief Executive Officer of joint stock companies must sign the annual report.

  • Audit (External)

    A critical review of the financial management of the company. The person who carries out the audit (the auditor) may not be an employee of the company.

  • Auditor's Report

    A brief, standardized report of the results of an audit that is directed toward shareholders. It contains information about whether the audit was carried out in accordance with generally accepted auditing practice and indicates whether the auditor can vouch that the income statement and the balance sheet are accurate, that the profit or loss is being distributed according to the proposal in the Board of Directors' Report, and whether the members of the board can be granted a discharge of responsibility for the fiscal year.

  • Balance Sheet

    The balance sheet describes the company’s assets, liabilities, and shareholders’ equity at a given point in time.

  • Break-even

    A term for the point where the revenue curve and the cost curve in a profit diagram intersect. At this intersection, the product of the project being analyzed exactly "pays for itself".

  • Budget

    A summary of the action plan and profit objectives of an area of responsibility expressed in financial and other terms.

  • Calculation Rate of Interest

    Calculation Rate of Interest The rate of interest that is estimated to correspond to the interest cost of capital that is tied up (in for example inventories and machinery). The calculation rate of interest then forms the basis for various investment calculations. The calculation rate of interest is usually higher than the ordinary bank rate of interest because it must not only cover normal return on investment but also an assumed level of risk.

  • Capital Turnover Rate, CTO

    Revenue for the year divided by total capital. This shows how efficiently a company uses its capital

  • Cash Flow

    Used to measure how much financial capital is created in a business during a specific period.

  • Cash Management

    Cash management is the collective term for the control of cash flow within a company. This includes for example reducing accounts receivable by getting customers to pay early, but also making sure that the company itself does not pay its accounts payable before the day upon which they are due. Another example is efforts to obtain a high rate of interest on liquid assets internal to the company and to pay low interest on borrowed money.

  • Contribution Margin

    The amount that shall cover fixed costs and possible profits for a certain volume of production. This is calculated as revenues minus variable costs.

  • Corporate Group

    Two or more legally independent companies (subsidiaries) with common management. The parent company owns at least 50 percent of the shares in the subsidiaries or controls at lease 50 percent of the votes at the annual shareholders meeting. According to the law, the parent company must issue a special consolidated financial statement in conjunction with its annual report.

  • Cost

    The value of used resources.