Page 43 - 342_

amount of money in the Cost of sales Costs Depreciation This is
business belonging to the incurred directly in simply a way of

proprietors or share- making sales. This could spreading the cost of
holders, including cash include the cost of raw equipment, machinery,

from proftable tran- materials or goods bought motor vehicles and
sactions. for resale, labour costs other assets over their

incurred in producing useful lives.

Capital employed goods etc. It does not

Total assets (excluding include overhead costs. Direct costs or

intangibles e.g. goodwill)
Variable costs
less current liabilities Credit Foregoing
Expenses, such as
(overdrafts, short term immediate payment. The materials, labour and

loans, trade and other period allowed or taken energy, which vary

creditors etc). to pay for goods or according to the number

services. of goods produced or

Cash book A daily services offered.

record of payments and Credit account A

receipts. running account with a Facility Usually a

trusted customer showing loan or overdraft

Cashflow The pattern the amount owed by them
offered to the business
of total cash coming in to you.
by a bank.
and going out of a

business over a period Creditor A party to
Financial year The
of time. whom money is owed by
accounting year of
the business.
your business, the
Cashflow projection A
period covered by
prediction of future Debtor A party who
cashflow. your profit and loss
owes money to the
account.
business. 40