Payables - Describe the cost of goods and/or services which an organisation has used or benefited from but hasn't yet paid for., Bad Debt - An amount which was owed to an organisation but they are now no longer going to receive, Bonus - An incentive given to workers., Bonus Shares - Shares which are given to existing shareholders without requiring payment., Cash Discount - Reduction in price offered to anyone paying by cash (as opposed to credit)., Corporation Tax - A tax paid by companies based on the amount of profit they made during a trading year., Debentures - Long-term loans obtained by a company., Depreciation - Expense recognising asset value decline over time., Fixed Costs - Costs that do not vary with production level., Goodwill - Intangible asset reflecting business reputation value., Hire Purchase - Agreement to pay for asset over time., Prime Cost - Direct expenses plus raw materials costs., Factory Overheads - Indirect costs associated with production., Residual Value - Estimated value of an asset at end of life., Preference Dividend - Dividend paid to preference shareholders before others., Intangible Assets - Assets which cannot be touched physically eg Goodwill., Interim Dividends - Some organisations pay dividends every 6 months, Ordinary Shares - Most common type of share., Partnership - Association of two or more people formed for the sole purpose of running a business., Partnership Agreement - Legally binding document signed by all of the partners., Preference Shares - Shares entitled to an agreed rate of dividend before Ordinary shareholders receive their dividend, less risky than Ordinary shares., Preliminary Expenses - Expenses incurred when a new business is starting before any profit has been made., Receivables - Payments made prior to an agreed date, classified as current assets in the Statement of Financial Position., Property Revaluation - The process of adjusting the value of an asset in the Statement of Financial Position to reflect its actual market value., Provisions - A charge set against profits in anticipation of future expenses, such as bad debt or depreciation., Share Premium - The difference between the issue price of shares and their original or nominal value., Straight Line Depreciation - A method of calculating depreciation where the asset's value is depreciated by the same amount each year., Rights Issue - An offer of new shares to existing shareholders in exchange for cash., Financial Accountant - Responsible for recording and reporting of the external transactions of an organisation., Retained Profits - Profits that are retained and used to help the company in the future, recorded in the Statement of Financial Position.,

Higher Accounting - Financial Accounting Key Terms

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