What is an Accrued Expense?
March 4, 2012
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Accrued Expense Accrued expense is expense incurred but unpaid at the end of the financial year Accrued Expense will increase the expense in the Income
What is the difference between Cost and Expense?
March 4, 2012
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Cost versus Expense Cost is R value of economic resource to undertake an activity (e.g manufacture product or render service) Expense is the cost that
What is Cost of Sales?
March 4, 2012
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Cost of Sales Opening stock Plus Purchases Less Closing stock = Cost of Sales Cost of Sales is direct cost of product sold, shown in
What is Input VAT?
March 4, 2012
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Input VAT If your business is registered for VAT, you can claim back VAT charged to you on products and services Input VAT = Expense
What is Break Even?
March 4, 2012
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Break Even Break Even is point where sales – expenses = 0 It is calculated in units & R. It can take months or years
What is Output VAT?
March 4, 2012
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Output VAT If your business is registered for VAT, you will charge VAT on the sale of products and services Output VAT = Sales *
What is Income received in advance?
March 4, 2012
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Income received in advance Income is received before the business has delivered the product or service for the benefit of customer Income received in advance
What is a Sales Budget?
March 4, 2012
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Sales Budget shows estimated sales for the budgeted period. It is allocated per business unit, person, area or similar basis The Budgeted period could be
What happens if you default on the Debt?
March 4, 2012
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When business secures debt, there are legal obligations between the parties. If the business does not fulfil those obligations, for example, making timely payments, the
What is current & long term Debt?
March 4, 2012
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Current & Long Term Debt Current portion of long term debt: amount payable in the next financial year (following 12 months) Long term debt =