profit margin - the difference between the cost of producing something and the price at which you sell it, interest - the extra money that you must pay back when you borrow money, dividend - a part of a company’s profit that is divided among the people with shares in the company, inventory - the amount of stock, including raw materials, supplies and finished goods, that a company has at a particular time, operating profit - profit relating to a company’s normal activities of providing goods or services, income statement - a statement showing the amount of money earned and spent in a particular period of time by a company, gross profit - a company’s profit before certain costs and taxes are taken away, liquidity - the ability of a company to make payments to employees and suppliers, interest payments to banks etc, variance - the difference between what something actually costs and its usual or standard cost, or its cost when calculated earlier, long-term liabilities - debts to be paid in more than one year, for example to lenders such as banks, rather than to suppliers,

ACCOUNTING 3 / 4

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