Friday, December 25, 2009
Sunday, December 20, 2009
Common SAP CML/Banking Terms
Some more terms in this post:
Liability/Debt:A financial obligation or debt of a business arising from a past transaction that is to be paid in the future.
Limited Partnership:A partnership in which one or more of the partners have had their liability for the debts of the partnership limited to their contributed capital.
Living Costs:Personal drawings from the business not including fees or salaries paid to shareholders or management that are included in expenses.
Liquidity:Includes working capital, quick ratio, collection period, inventory turnover, bank support. Measures the enterprise's capacity to meet current obligation using its most liquid assets and short-term financing opportunities.
Long-Term Debt/Long Term Liabilities:A debt with a maturity date beyond one year from the date of the balance sheet or beyond the normal operating cycle (where the cycle is longer than one year). Long-term debt excludes that portion of the debt principal due within one year.
Machinery, Equipment & Vehicles:Includes all machinery and equipment owed by the business. On a corporate financial statement is usually recorded at purchase cost less accumulated depreciation and includes direct purchase and installation expenses.
Mandatory Inventory Adjustment:An adjustment usually made to expenses or net farm income for tax purposes. These adjustments do not reflect actual values of inventory on hand and should not be included in net income calculations for analysis purposes.
Net Farm Income/ Net Profit or Loss:The excess of revenues over expenses for a given period of time. If expenses exceed revenue, the difference is called net loss.
Non-Cumulative Stock:That part of issued stock for which settlement has been received.
Off-farm Income (net):Employment, investment or business income earned outside of the farm operation less all deductions from source including income taxes, CPP and EI premiums. This amount does not include capital gains reported on the tax return.
Operating expenses:Gross expenses less term interest, depreciation, land rent and property taxes.
Operating Expenses (AGRIBEX):Usually contains expenses directly related to selling and promoting business products or services.
Operating loan/ Line of credit: Cash advance to a business to pay for operating costs. This loan usually provides for repayment within one year or the normal operating cycle.
Optional Inventory Adjustment: An adjustment usually made to expenses or net farm income for tax purposes. These adjustments do not reflect actual values of inventory on hand and should not be included in net income calculations for analysis purposes.
Other Income: All income not included in revenue, gain on disposal or extraordinary income.
Paid-up Capital: That part of issued capital for which settlement has been received.
Participating Stock: A class of preferred capital stock that, in addition to providing a dividend at a fixed or determinable annual rate, participated with common stock in the distribution of profits and sometimes in the residual distribution at liquidation of company.
Liability/Debt:A financial obligation or debt of a business arising from a past transaction that is to be paid in the future.
Limited Partnership:A partnership in which one or more of the partners have had their liability for the debts of the partnership limited to their contributed capital.
Living Costs:Personal drawings from the business not including fees or salaries paid to shareholders or management that are included in expenses.
Liquidity:Includes working capital, quick ratio, collection period, inventory turnover, bank support. Measures the enterprise's capacity to meet current obligation using its most liquid assets and short-term financing opportunities.
Long-Term Debt/Long Term Liabilities:A debt with a maturity date beyond one year from the date of the balance sheet or beyond the normal operating cycle (where the cycle is longer than one year). Long-term debt excludes that portion of the debt principal due within one year.
Machinery, Equipment & Vehicles:Includes all machinery and equipment owed by the business. On a corporate financial statement is usually recorded at purchase cost less accumulated depreciation and includes direct purchase and installation expenses.
Mandatory Inventory Adjustment:An adjustment usually made to expenses or net farm income for tax purposes. These adjustments do not reflect actual values of inventory on hand and should not be included in net income calculations for analysis purposes.
Net Farm Income/ Net Profit or Loss:The excess of revenues over expenses for a given period of time. If expenses exceed revenue, the difference is called net loss.
Non-Cumulative Stock:That part of issued stock for which settlement has been received.
Off-farm Income (net):Employment, investment or business income earned outside of the farm operation less all deductions from source including income taxes, CPP and EI premiums. This amount does not include capital gains reported on the tax return.
Operating expenses:Gross expenses less term interest, depreciation, land rent and property taxes.
Operating Expenses (AGRIBEX):Usually contains expenses directly related to selling and promoting business products or services.
Operating loan/ Line of credit: Cash advance to a business to pay for operating costs. This loan usually provides for repayment within one year or the normal operating cycle.
Optional Inventory Adjustment: An adjustment usually made to expenses or net farm income for tax purposes. These adjustments do not reflect actual values of inventory on hand and should not be included in net income calculations for analysis purposes.
Other Income: All income not included in revenue, gain on disposal or extraordinary income.
Paid-up Capital: That part of issued capital for which settlement has been received.
Participating Stock: A class of preferred capital stock that, in addition to providing a dividend at a fixed or determinable annual rate, participated with common stock in the distribution of profits and sometimes in the residual distribution at liquidation of company.
Saturday, December 19, 2009
Common SAP CML/Banking Terms
This is second post of SAP CML/Banking common terms.
Shareholder Loans: The amount that a company owes to its shareholders. Most shareholder loans have no interest rate or fixed repayment terms.
Revenue/Sales: The value of all goods produced and sold and all services rendered during the fiscal period from the operation of the business.
Rollover: A term used to describe a transaction under which no gain or loss is recognized for tax purposes, so that the tax cost of an asset is "rolled over" to another asset or another taxpayer.
Selling Expenses: All expenses relating directly to selling and promoting company products or services.
Share Capital: Another name for capital stock.
Shareholders' Equity: The excess of assets over liabilities.
Par Value: A value printed on the face of the security certificate.
Periodic Inventory Method: An inventory accounting system that requires a physical count of inventory to determine the final amounts of raw materials, work in process, and finished goods, and hence also the cost of goods sold.
Perpetual Inventory Method: An inventory accounting system whereby a continuous record is kept that tracks raw material, work in progress, finished goods and cost of goods sold on a day-to-day basis.
Preferred Stock: A class of capital stock with special rights or restrictions, as compared with other classes of stock of the same company. The preference will generally relate to the distribution of dividends at a fixed or determinable annual rate, with or without priority for return of capital on liquidation. The restrictions generally apply to voting rights.
Prepaid Expenses: The unused total at the statement date of any item paid for in advance (insurance premiums, fall applied fertilizer).
Principal Payments: The current portion of long-term debt from the opening balance sheet. (The principal payment for the year ending December 31, 1998 would be the current portion of long-term debt that appeared on the balance sheet dated December 31, 1997 as that is the amount of principal that was scheduled to be paid in the year ending December 31 1998). If historical balance sheets are not available, the actual principal paid during the period is used.
Proformance Statements: A projection of what costs and revenue should be.
Forecast Provision for Bad Debts: A reserve account to allow for customers who cannot pay.
Quota: An intangible asset that is a license, or right, to sell a certain amount of a specific commodity.
Residual After Debt Service: Debt service capacity minus debt service requirements.
Residual for Growth: Residual after debt service minus depreciation plus principal payments. Represents the funds available for growth or investment.
Retained Earnings/Deficit: The accumulated balance of net income in excess of net losses of an incorporated business after any dividends and other appropriate charges or credits. A negative retained earnings balance is termed "deficit."
Shareholder Loans: The amount that a company owes to its shareholders. Most shareholder loans have no interest rate or fixed repayment terms.
Revenue/Sales: The value of all goods produced and sold and all services rendered during the fiscal period from the operation of the business.
Rollover: A term used to describe a transaction under which no gain or loss is recognized for tax purposes, so that the tax cost of an asset is "rolled over" to another asset or another taxpayer.
Selling Expenses: All expenses relating directly to selling and promoting company products or services.
Share Capital: Another name for capital stock.
Shareholders' Equity: The excess of assets over liabilities.
Par Value: A value printed on the face of the security certificate.
Periodic Inventory Method: An inventory accounting system that requires a physical count of inventory to determine the final amounts of raw materials, work in process, and finished goods, and hence also the cost of goods sold.
Perpetual Inventory Method: An inventory accounting system whereby a continuous record is kept that tracks raw material, work in progress, finished goods and cost of goods sold on a day-to-day basis.
Preferred Stock: A class of capital stock with special rights or restrictions, as compared with other classes of stock of the same company. The preference will generally relate to the distribution of dividends at a fixed or determinable annual rate, with or without priority for return of capital on liquidation. The restrictions generally apply to voting rights.
Prepaid Expenses: The unused total at the statement date of any item paid for in advance (insurance premiums, fall applied fertilizer).
Principal Payments: The current portion of long-term debt from the opening balance sheet. (The principal payment for the year ending December 31, 1998 would be the current portion of long-term debt that appeared on the balance sheet dated December 31, 1997 as that is the amount of principal that was scheduled to be paid in the year ending December 31 1998). If historical balance sheets are not available, the actual principal paid during the period is used.
Proformance Statements: A projection of what costs and revenue should be.
Forecast Provision for Bad Debts: A reserve account to allow for customers who cannot pay.
Quota: An intangible asset that is a license, or right, to sell a certain amount of a specific commodity.
Residual After Debt Service: Debt service capacity minus debt service requirements.
Residual for Growth: Residual after debt service minus depreciation plus principal payments. Represents the funds available for growth or investment.
Retained Earnings/Deficit: The accumulated balance of net income in excess of net losses of an incorporated business after any dividends and other appropriate charges or credits. A negative retained earnings balance is termed "deficit."
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