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Question		Answer
revenue start learning		income / turnover / sales / the top line
Cost of goods sold start learning		(=direct costs) includes manufacturing costs, salaries of manual (blue collar) workers
Operating expenses start learning		(=indirect costs / overhead) includes salaries of sales and office staff, marketing costs, utility bills
Non-operating income start learning		includes profits from investments in other companies
EBITDA start learning		stands for Earings Before Interest, Tax, Deprectiation and Amortization
Earnings start learning		profits/ the bottom line
Depreciation start learning		refer to loss in value of a tangible asset (eg a vehicle)
Amortization start learning		refer to loss ina value of a intangible asset (the purchase of licence or trademark)
Interest start learning		refer to money paid to the bank for loans (or received from the ban for cash balances)
Dividents start learning		is money paid to shareholders
Retained profit start learning		is transferred to the Balance sheet, where it joins the amounts from previous years
accounts receivable start learning		is the amount owed to the business by customers (debtors)
Inventory start learning		is the value of raw materials & stock
Currents assets start learning		may also include 'marketable securities' (= shares intended for disposal within one year)
Fixtures start learning		part of building that cannot be moved such as lights
Fixed assets start learning		may also include long-term financial investments
Intangible assets start learning		include patents, trademarks & 'goodwill'(reputation, contracts and expertise of companies that have been bought) (
Bank debt start learning		(=loan capital) also includes any overdraft (= temporary negative balance)
Account payable start learning		is money owed to suppliers
Accrued start learning		items are those where expense has been incurred, but money is not yet paid. 'Accrued salaries' typically includes future bonuses
Provision start learning		amounts set aside for anticipated one-time payments that are not part of regular operations - perhabs a lawsuit or compensation package for employees being laid off
mortgage start learning		is a long-term bank loan to buy a property
principal start learning		amount raised by issuing the bonds
share capital start learning		(= common stock, AmE) is amount raised at initial flotation on the stock market
Retained profit start learning		(=reverses / Retained earings). The figure showing here is more than 45,000 transferred from income statement because it is an amount accumulated over several years

P 40, 41 Accounting

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