Gross Profit - Sales less Cost of Sales
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Income -Amount of sales made in the current financial year, regardless of whether cash has been received or not
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Ledger Account -An account containing transaction data relating to a specific type of item, whether in the Profit and Loss or Balance sheet. The full list of ledger accounts for a business is called the business’s Chart of Accounts
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Liability - Amounts owed to entities outside of the business e.g. bank loan, supplier payments & overdrafts
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Long-term Liability - Long-term liability (items or amounts to be paid after 12 months) e.g. bank loan
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Net Profit - Gross Profit less Expenses. Amount to be carried over to retained earnings at the end of each financial
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Owner’s Equity - Net worth of the business to the owner
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Reporting Period -The 12 month period which the business runs / reports to in a normal year (period may be shorter in start and end years). Normally 1July to 30 June
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Retained Earnings -Total profits and/or losses from start of business, to date
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Trial Balance - A list of all the business’s account balances which should net to zero i.e. should ‘balance’