Assets which can change considerably within a given accounting period. These usually include stocks, debtors and cash.
Customer
The purchaser of the goods and services produced by a business.
Debenture
A long-term loan to a company to be redeemed on a future date. The interest is normally paid annually. Debenture is paid before dividends on preference and ordinary shares.
Depreciation
The amount by which profits are reduced to allow for the decline in the value of fixed assets. The term is also used to describe the fall in the value of a country’s currency in relation to foreign currencies.
Direct costs
Costs which can be clearly allocated to a particular product. Such costs usually vary according to the level of production.
Efficiency
A ratio of the input of an operation or process to the output.
Equity
The value of a company’s assets after all liabilities, other than those of shareholders have been allowed. Sometimes used to mean shareholder’s funds.
Fixed assets
Assets which are expected to stay in the business for longer than the given accounting period. They are usually assets that the business needs in the long term in order to continue its operations.
