Gross Margin is used synonymously with Gross Profit or Gross Profit Ratio. Revenue expenditure is the total cost that is incurred on revenue generating activities. Cumulative Earnings is the sum total of all the earnings over a period. Intentional creation of fictitious assets may amount to fraud. Every entity has to follow a separate set of rules. Closing date is the date where one gets possession of or title to an asset. Investment expense is the expenses incurred on the inventory other than those expenses which are incurred for purchasing the inventory, like installation costs, brokerage, etc. Bank overdraft represents negative balance in the bank account of the company.
Maintenance Is The Cost Incurred For Keeping An Asset In Working Condition.
Pledged accounts receivable is a short term loan arrangement where the accounts receivable of the business are kept as security with the lender. Face value is the value that is printed on the face of a commodity. Net of taxes usually indicates the effect of applicable taxes, which has been considered in determining the overall shipping to mexico effect of an item on the financial statements. A bond is a certificate of debt issued either by a corporation or the government to raise money. Warehouse is a store where all the unsold finished goods or the unused raw materials are kept. A corporation is a business that has been incorporated and enjoys separate legal rights from its owners. Income is the amount of money received during a period on account of anything. Profit after tax is the excess of revenue over all the expenses and after payment of tax.
The discount allowed by the company on sales to induce early cash payment is called sales discount. Trading concern is one that derives its products for sale by purchasing products from other producers for resale to their customer base, thereby generating revenue. Capital reduction means to reduce the total capital available with the company. Committed costs are a long term fixed costs that the business has an obligation to pay. Expendable item is one that can be used and discarded and will not affect the end product. Operating margin is the ratio, which compares operating income to sales revenue. Profit before tax is the profit earned by the business before making the deduction for tax. Mixed costs are those costs which have both, a fixed and variable component. Each company sets a purchase budget where the total expense on purchases is fixed. Inventory valuation is the process of assigning monetary value to inventory.