BOOKKEEPING WORDS YOU NEED TO KNOW (LETTERS I TO N)

We’ve now given you a list of the longest periods in the financial world and through your bookkeeping or accountant. Now we have added more.

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Income Statement

An Outline of the Company’s Financial Activities. (Sales minus Expenses and Expenses) Net profit or gross financial statement for the period ending.

Interim Reports

Reports At the end of the year, financial reports are prepare to reflect how business owners, banks, and lending companies operate throughout the year.

Inventory

Tracking items for sale or basically looking at all the items and products that a consumer is ready to buy.

Journal

A daily record of transactions is kept by a bookkeeper.

Liabilities

All business-related loans are related to unpaid loans and receipts.

Loss

Expenses exceed income.

Margin

The difference between the selling price and the price of the product or item ($ 40 for 100 items sold and the margin for 60 items).

Net profit

gross profit minus business expenses.

BOOKKEEPING WORDS YOU NEED TO KNOW (LETTERS D TO H)

We give you the letters D to H for bookkeeping words.

Debtors

The person or company to which you owe money is called a debtor.

Deductible

Excludes Any expenses that are define as deductible business expenses. This will reduce your business profits. But it also reduces the income tax you pay.

Depreciation

The value of your fixed assets decreases over time. What is consumption?

Equity

the amount that a business owner contributes to the business with his money. This is fundraised for personal use.

Expenses

All kinds of money and expenses are used to run a business.

Factoring

Receive payment immediately without waiting for payment from the customer’s finance company.

Financial Statements

Need to report and pay income tax. It is designe to show how bad or good the work is. And the real value of this work

Read Other: You Must Declare Rental Income

Profit and Loss

When trading foreign currency transactions leads to profit or loss. Sale of property and other capital transactions

Gross profit

Gross profit is generally calculated as the total profit of a company, which does not include the direct cost of any sale.

General Ledger

Business Account Summary Book

Fixed Assets

Physical assets such as property, plants, and equipment. And financial assets such as cash, credit, and financial instruments. Fixed assets are usually listed in the company’s books of accounts. This is based on inventory and/or concentration protection.

Hard Cost

The actual purchase price of the real asset means that the purchase price of the new tractor will be an estimate. Discounted prices include additional charges for items such as invoice preparation. Prepaid and extended warranty or service agreement for a new device

Hedge

When applied to volatility, it is a bargain that minimizes investment risk.

Hedge Fund:

This is a special type of investment fund. There are restrictions on the following types of investments. The ability to sell short hedge funds in particular also allows for a more aggressive strategy. This is more private, meaning some people who are generally wealthy are allowe to invest in hedge funds.