• 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 Income or Accrued Revenues

    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

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

  • Affiliate

    Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company.

  • 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. The Total Assets and the sum of Equity and Liabilities shall sum up to the same amount, i.e. “balance”.

  • 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 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

    The rate of interest that is estimated to correspond to the interest cost of capital that is tied up. 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 Employed

    Total Equity and Liabilities deducted by the Non Interest bearing debts

  • Capital Turnover Rate

    Revenue for the period divided by capital. This shows how efficiently a company uses its capital. Different capital can used depending on the purpous of the analysis.

  • Cash Flow

    Cash flow is the balance of the amounts of cash being received and paid by a business during a defined period of time.

  • Cash Management

    The collective term for the control of cash flow within a company. This includes reducing accounts receivable by getting customers to pay early and 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

    Revenues from the sale of a product or service deducted by the variable cost.