Accounting
Inventory
The items which will be sold to the customers to generate income
Expense
Outflows of assets incurred by a business whilst it generates revenue
Group-One Expense
expenses that are directly related to the pormotion, distribution and provision of its goods and services. eg. ADVERTISING, SHOP, RENT, SHOP, WAGES,etc.
Administration Expense
Expenses that are related to the daily running of the business. eg. RATES, OFFICE RENT, ELECTRICITY
Finance Cost
Expenses that are related tothe business's interest payments eg. INTEREST ON LOAN, INTEREST ON MORTGAGE
Revenue
Income earned from the business’s main activity. e.g. selling goods for trading businesses;
providing services for the service businesses
Other Income
Additional income earned from activities other than their main business activity. e.g. RENT RECEIVED, DIVIDENDS RECEIVED, INTEREST RECEIVED
Income
Inflows of assets from the business activities or invesments
Income Statement
Financial Statement used to calculate the total income and the total expense of a business, which then will be used to calculate the business Profit/Loss for the year
Profit for the year
The positive amount remaining after subtracting the total expenses incurred from the total income earned over a year
Loss of the year
The negative amount remaining after subtracting the total expenses incurred from the total income earned over a year
Profitability
Profitability is a measuremnet of a business's ability to generate income relative to its expenses
Trading Business
The business that mainly sells goods to generate income. eg. Supermarket, Cafe, etc.
Service Business
The business that mainly provides services to generate income. eg. Hair Salon, Law Firm, etc.
Sales
Revenue generated by the trading business for selling inventory to the customer
Fees Received
Revenue generated by the service business for providing service to the customer
Term Deposit
The amount of money locked in a savings account for an agreed period. In return interest is received
Dividends
Return on invesments in another company's shares