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| Balance sheet
|
a statement of a business' assets and liabilities |
| Break even analysis |
a calculation to identify the quantity of a product that a
business needs to sell in order to cover fixed costs and variable costs of
production, but to make no profit and no loss |
| Budget |
a financial statement prepared and agreed prior to the
financial year |
| Cash flow forecast
|
a statement of the cash flowing in and out of a business
or project in the future |
| Cash flow statement
|
a reconciliation of a company's opening and closing cash
balances for the year |
| Costing |
the process of researching the likely costs of producing
goods or services |
| Dividend cover
|
profit after tax/dividends |
| Dividend yield
|
dividends per share/market price per share |
| Dividends per share
|
dividends divided by the number of shares |
| Earnings per share
|
profit after tax divided by the number of shares |
| Exception reporting
|
the filtering of information so that managers can quickly
pick out exceptional or unusual items |
| Financial accounting
|
accounting mainly concerned with the financial reports at
the end of each period to the shareholders |
| Investment appraisal
|
the process of evaluating potential investments |
| Management accounting
|
accounting mainly concerned with providing critical
financial information for management to make strategic and tactical decisions |
| Net Present Value
|
an investment appraisal technique that takes account of
the time value of money |
| Payback period
|
the period it takes to repay the initial investment in a
project |
| Price/earnings ratio
|
market price divided by the earnings per share |
| Pricing |
the process of setting prices with reference to the market
and to the fixed and variable costs of production |
| Profit and loss account |
a statement of income and expenses for a given period of
time |
| Ratio analysis
|
the process of expressing one amount in terms of another
and using the result as a basis for comparison with prior years' accounts,
budgets or those of other companies |
| Return on capital employed
|
profit divided by shareholders' funds x 100 |
| Variance analysis
|
the process of comparing actual income and expenditure to
budget and identifying explanations for the differences |