Terms starting with

Expenditure

The total amount spent by a business to acquire assets, goods, or services. It includes both capital expenditures (long-term investments) and operating expenses (day-to-day costs).…

Exchange Gain/Loss

The profit or loss from converting one currency to another due to exchange rate fluctuations. These arise in international transactions and impact income statements. Gains…

Employee Liabilities

Amounts owed by a company to its employees or on their behalf. This includes unpaid wages, accrued vacation, payroll taxes, and pension contributions. These are…

Earnings Statement

Earning statement is also known as the income statement or profit and loss statement. It summarizes a company’s revenues, expenses, and profits over a specific…

Earnings Per Share

A key profitability metric showing how much net income is earned per outstanding share of common stock. It’s calculated as net income minus preferred dividends,…

Earned Surplus

Another term for retained earnings the portion of net profits that is not distributed as dividends but kept within the company to reinvest or pay…

Earned Income

Income received through active work or services, like salaries, wages, commissions, or business profits. It contrasts with passive income (like interest or dividends). For tax…

Expenses

Expense is a costs incurred by a business to generate revenue. These include rent, salaries, utilities, and materials. Expenses are recorded on the income statement…

External stakeholders

Individuals or groups outside the business who have an interest in its performance or decisions. These include investors, customers, suppliers, lenders, regulators, and the public.…

Equity

Equity represents the residual interest in a company’s assets after deducting liabilities. For owners, it reflects their stake in the business. In corporations, it includes…

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