Prudence principleThe idea that financial information should be reported conservatively, so that it is not possible that the overall value of a company is overstated.RatioA mathematical calculation which compares one amount to another. Repair and maintenanceCost to fix an asset (such as a machine), or the normal costs needed to keep the asset working properly.Salvage valueThe estimated value of an asset at the end of its useful life.Scrap valueThe sales value of an asset when it can no longer be used.to service debtTo pay the interest and capital repayment in accordance with the loan contract.Stock1. Another word for the shares of a company.2. The inventory of the company, i.e., the goods which have not been sold.SubsidiaryA company which is owned or controlled by another company. (See also: parent company.)