income statement keywords

Question	Answer
debtors	people you owe money
share capital	funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares.
working capital	Working Capital is a measure of both a company's efficiency and its short-term financial health. Working capital is calculated as: Working Capital = Current Assets - Current Liabilities.
retained profits	the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.
liabilities	long term: In accounting, a section of the balance sheet that lists obligations of the company that become due more than one year into the future. current: Amounts due to be paid to creditors within twelve months.
assets	fixed: They are things that a company has for a long time. such as the cars that a car company has because they won't sell a lot quickly current: Money, equipment, staff and the premises that your company owns
shareholder	People who own a percentage of your company
HMRC	The HMRC, or Her Majesties Revenue and Customs, collect tax from people and organisations
Dividend	A sum of money paid regularly to shareholders out of profit.
financial year	The year of your business, it begins when your business opens and ends one year later, at which point another financial year begins

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	Created by rob belton almost 9 years ago