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GLOSSARY OF TERMS

The business and Articles of employee of the
financial worlds have Association company. Sole traders

evolved their own jargon
These are the rules, which and partnerships do not
and you may not be
govern the internal
need to have their
entirely comfortable
management of the
with some of the terms accounts audited.
company.

used. If your

professional advisers use Balance sheet A
Asset Something, which
language, which you statement of assets and
is owned by or owed to
don't understand, always liabilities of the business

make sure that they the business, which has a at a particular point in

explain themselves fully. measurable value (e.g. time.

This section gives brief
cash, property,
explanations of some of Business plan A
machinery) and is
the key terms you are document, which

likely to meet. therefore in its favour. analyses your business

activities in detail and

Annual accounts A Audit A process carried predicts the expectations

summary of the records of the business for at
out by an accountant
of the financial activities least the coming year.
(auditor) on all companies
of your business, which Usually presented to the
each year to check that
are prepared by your bank to support a request

accountant, presented to the financial records are for loan and/or overdraft

the Inland Revenue and, accurate and give a true facilities.

if you are a company,
and fair view of a
filed at Companies
company's business. The Capital This has
House.
several meanings but
auditor cannot be an 39
usually refers to the