Key terms

Beginning inventory – початкові запаси ( запаси на початок періоду) – goods on hand and available for sale to customers at the beginning of the accounting period.

Cash flow statement – звіт про рух грошових коштів – a statement showing the sources of cash receipts and purchase of cash payments during an accounting period.

Cost of goods sold – собівартість реалізованої продукції (проданих товарів) – a computation appearing as a separate section of an income statement showing the cost of goods sold during the period. Computed by adding net delivered cost of merchandise purchases to beginning inventory to obtain cost of goods available for sale, and then deducting from this total the amount of the ending inventory.

Ending inventory – кінцеві запаси (запаси на кінець періоду) – goods still on hand and available for sale to customers at the end of the accounting period.

Expenses – витрати – the cost of the goods and services used up in the process of obtaining revenue. Sometimes referred to as expired costs.

General expenses – загальні витрати – expenses of general offices, accounting departments, personnel office, credit and collection department and activities other than the selling of goods. A subdivision of operating expenses.

Gross profit on sales – валовий прибуток від реалізації – revenue from sales minus cost of goods sold.

Investing activities – інвестиційна діяльність – a heading required in the cash-flow statement of an organization by Financial Reporting Standard 1, Cash Flow Statements, which shows the cash flows related to the acquisition or disposal of any asset held by the organization as a fixed asset or as a current-asset investment, other than assets included within cash equivalents.

Net income – чистий дохід – the excess of revenue earned over the related expenses for a given period.

Operating expenses – операційні витрати, витрати по основних видах діяльності – include both selling expenses and general and administrative expenses. Deducted from gross profit on sales to determine income from operations or net income.

Profit and loss account (income statement) – звіт про фінансові результати ( звіт про прибутки та збитки ) – a report used to evaluate the performance of a business by matching its revenue and related expenses for a particular accounting period. Shows the net income and the net loss.

Revenue – дохід, виручка – the price of goods sold and services rendered by a business. Equal to the inflow of cash and receivables in exchange for services rendered or goods delivered during the period.

Sales discounts – знижка для стимулювання збуту та збільшення обсягу продажу – a reduction in the price of goods below list price. A discount granted by a company to a client, for example for a bulk purchase or a prompt payment, or for buyers who pay cash. It is shown as an expense in the profit and loss account.

Sales returns – повернення товару – goods returned to an organization by customers, usually because they are unsatisfactory.

Selling expenses – витрати на реалізацію товарів – expenses of marketing the product, such as advertising, sales salaries, and delivery of merchandise to customers. A subdivision of operating expenses.

FRS (Financial Reporting Standards) – стандарти фінансової звітності – any of a series of standards issued by the UK Accounting Standards Board. Many of the more recent FRSs have the aim of harmonizing UK practice with the standards published by the International Accounting Standards Board.