Asset, item of monetary value owed by a business., Liability , Financial obligation of a business that it is required to pay in the future., Gross profit, Revenue less cost of sales, Cost of sales, Direct cost of the goods that were sold, Dividends, share of the profits paid to shareholders, Low-quality profit, Profit that cannot easily be repeated , High-quality profit, profit that can be repeated and sustained, Share capital , Total value of capital raised from shareholders by the issue of shares, Trade receivables , Value of payments to be received to from customers who bought on credit, NRV, amount for which inventory can be sold minus the cost of selling it., Depreciation, decline in the estimated value of a non-current asset over time., Net book value, current statement of financial position of a non-current asset = original cost less accumulated depreciation., Straight line depreciation, constant amount of depreciation is subtracted from the value of the asset each year., Goodwill, arises when a business is valued at or bought for more than the balance sheet value of its assets., Shareholders' equity, total value of assets less the total value of liabilities..

Chapter 33

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