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Gearing (Financial)

The ratio of debt capital to ownership claim.

General Purpose Financial Statements

Documents containing accounting information which would be expected to be of interest to a wide range of user groups.

For a limited liability company there would be: a balance sheet, a profit and loss account, a statement of recognised gains and losses and a cash flow statement.

Going Concern Basis

The assumption that the business will continue operating into the foreseeable future.

Goodwill

Goodwill on acquisition is the difference between the fair value of the amount paid for an investment in a subsidiary and the fair value of the net assets acquired.

Gross

Before making deductions.

Gross Margin

Sales minus cost of sales before deducting administration and selling expenses (another name for gross profit). Usually applied when discussing a particular line of activity.

Gross Margin Ratio

Gross profit as a percentage of sales.

Gross Profit

Sales minus cost of sales before deducting administration and selling expenses (see also gross margin).

Group

Economic entity formed by parent and one or more subsidiaries.