The fall in the value of noncurent assets over time, caused by wear and tear (due to the asset being used) or obsolescence (out-dated).

The indirect or fixed costs of production, such as administration charges, management salaries, insurance premiums and rent.

The published annual financial statements that all limited liability companies are legally obliged to report, namely the balance sheet and the P&L account.

An intangible asset which exists when the value of a firm exceeds its book value (the value of the firm's net assets).

The difference between the sales revenue of a business and its direct costs incurred in making or purchasing the products that have been sold to customers.

Refers to the purchase cost of a particular fixed asset. It is used in the calculation of depreciation.

The value of an asset as shown on a balance sheet. The market value of assets can be higher than its book value because of intangible assets such as brand value or goodwill.

The direct costs of producing or purchasing stock that has been sold to customers.

Suppliers who allow a business to purchase goods and/or services on trade credit.

Cash or any other liquid asset that is likely to be turned into cash within 12 months of the balance sheet date. E.g. cash, debtors, stock.

Debts that must be settled within 1 year of the balance sheet date. E.g. bank overdrafts, trade creditors and other short term loans.