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Called Up (Share Capital)
The company has called upon the shareholders who first bought the shares, to make their payment in fu
An amount of finance provided to enable a business to acquire assets and sustain its operations.
Capital ExpenditureSpending on non-current (fixed) assets of a business.
of shares to existing shareholders in proportion to shares already
held. Raises no new finance but changes the mix of share capital and
CashCash on hand (such as money held in a cash box or a safe) and DEPOSITS in a bank that may be withdrawn on demand.
highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in
Cash Flow ProjectionsStatements of cash expected to flow into the business and cash expected to flow out over a particular period.
Cash Flow StatementProvides information about changes in financial position.
ChairmanThe person who chairs the meetings of the board of directors of a company (preferably not the chief executive).
relation to interest or taxes, describes the reduction in ownership
interest reported in the income statement (profit and loss account) due
to the cost of interest and tax payable.
Chief ExecutiveThe director in charge of the day-to-day running of a company.
Close SeasonPeriod during which those who are 'insiders' to a listed company should not buy or sell shares.
Commercial PaperA method of borrowing money from commercial institutions such as banks.
Companies Act 2006 (The)Legislation to control the activities of limited liability companies.
ComparabilityQualitative characteristic expected in financial statements, comparable within company and between companies.
CompletenessQualitative characteristic expected in financial statements.
statement of principles providing generally accepted guidance for the
development of new reporting practices and for challenging and
evaluating the existing practices.
ConservatismSee prudence. Sometimes used with a stronger meaning of understating assets and overstating liabilities.
measurement and display of similar transactions and other events is
carried out in a consistent way throughout an entity within each
accounting period and from one period to the next, and also in a
consistent way by different entities.
Consolidated Financial StatementsPresent financial information about the group as a single reporting entity.
is a process that aggregates the total assets, liabilities and results
of the parent and its subsidiaries (the group) in the consolidated
Contingent LiabilitiesObligations that are not recognised in the balance sheet because they depend upon some future event happening.
ControlThe power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Convertible LoanLoan finance for a business that is later converted into share capital.
system by which companies are directed and controlled. Boards of
directors are responsible for the governance of their companies.
Corporate Recovery DepartmentPart of an accountancy firm which specialises in assisting companies to recover from financial problems.
Corporate Social ResponsibilityCompanies integrate social and environmental concerns in their business operations and in their interactions with stakeholders.
Corporation TaxTax payable by companies, based on the taxable profits of the period.
Cost of a Non-Current AssetIs the cost of making it ready for use, cost of finished goods is cost of bringing them to the present condition and location.
Cost of Goods SoldMaterials, labour and other costs directly related to the goods or services provided.
Cost of SalesSee cost of goods sold.
CouponRate of Interest payable on a loan.
Credit (Bookkeeping System)Entries
in the credit column of a ledger account represent increases in
liabilities, increases in ownership interest, revenue, or decreases in
Credit (Terms of Business)The supplier agrees to allow the customer to make payment some time after the delivery of the goods or services.
Typical trade credit periods range from 30 to 60 days but each agreement is different.
document sent to a customer of a business cancelling the customer's
debt to the business, usually because the customer has returned
defective goods or has received inadequate service.
Credit PurchaseA business entity takes delivery of goods or services and is allowed to make payment at a later date.
Credit SaleA business entity sells goods or services and allows the customer to make payment at a later date.
CreditorA person or organisation to whom money is owed by the entity.
Critical EventThe point in the business cycle at which revenue may be recognised.
Current AssetAn asset that is expected to be converted into cash within the trading cycle.
Current LiabilityA liability which satisfies any of the following criteria:
(a) it is expected to be settled in the entity's normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within 12 months after the balance sheet date.
Current ValueA method of valuing assets and liabilities which takes account of changing prices, as an alternative to historical cost.
Customers' Collection PeriodAverage number of days credit taken by customers.
applied to the accounting records at the end of an accounting period to
ensure that all transactions for the period are recorded and any
transactions not relevant to the period are excluded.