What are Net Fixed Assets? Net Fixed Assets is a valuation of the net book value of all fixed assets. This is done by taking the historical cost of the the assets and subtracting depreciation. Think of a car that you have purchased. You may of bought it new for $20k. Two years later that …
What is a Permanent Current Asset? A permanent current asset is the minimum amount of current assets a business needs in order to continue operating. Cash, accounts receivable and inventory being examples. A certain amount is needed for the business to carry on working. As an example, a business may not have enough cash or …
A Financial Director is a senior member of a finance team and the business. They usually run the finance department, or answer directly to the CFO. A Finance Director/CFO is usually an executive level position, often answering directly to the CEO and sitting on the board of directors. In many cases of a CEO leaving …
CIMA vs ACCA is an ongoing decision that people have to make when embarking on their accountancy career. So which one should you pick? While it does depend on the career path you take, I would generally recommend CIMA if you wish to begin your career working inside a business. Both qualifications are highly regarded …
Trade Creditor Meaning Trade Creditors (also know as Accounts Payable or Trade Payable) are when you have made a purchase with a supplier but not yet paid them. So while a Trade Debtor sits on our Sales Ledger, a Trade Creditor sits on our Purchase Ledger. As an example, say we purchased some new desks …
Trade Debtors Meaning Trade Debtors (also known as Accounts Receivables or Trade Receivables), are clients that have made a purchase on credit, and have not yet paid for the product or service. As an example a client may purchase ten laptops from your Computer Hardware business for £5,000. As is usual for your business, you …
Sundry debtors are clients/customers that rarely make a purchase on credit. They will show up as a single line on your Trade Debtors report. For example say your business was a Corporate Travel Agent. You may have clients who book hundreds of flights and hotel stays with you a month. These clients would all have …