Definitions
Resources of value that the business owns or are owed to it
What it Assets
Gross Profit
Sales revenue- cost of sales
What job is ethics apart of
Accounting
What are the two types of profit and loss statement
For and not for profit
resources of value that the business owns or are owed to it (include fixed and current assets)
Firms legal debts
Cost of sales
opening stock+ purchases-closing stock
Unbiased account of factual information
Independence in fact
Provide the equation for profit for period
profit before tax - corporation tax
12+
Equity
Amount of money that would be returned to a business if everything was liquidated (all of firms assets are sold to pay off debt)
The last row of a for profit P&L
Retained profit
remaining unbiased even if the auditor and business have a close personal relationship
Independence in appearance
What categories are under current assets
(4)
Cash, debtors, stock, current assets
What branch does share capital fall under?
Equity
Fixed vs variable cost
Costs that do not change/costs that do change
non current+current
assets/liabilities
Objective
What falls under non current liabilities (2)
Borrowings long term and non current liabilities
What are the two depreciation equations called
Straight line and units of production
name the 3 intangible assets
Patents, Goodwill, Copyright laws
Straight Line depreciation
original cost- residual value/expected useful life of asset
Define ethics in accounting
Ethics in accounting refers to moral value and judgement as it applies in accounting
What falls under non current assets
Property plant and accumulation
Accumulated depreciation
non current assets
How are the two depreciation equations different
One is based on time and one is production