Glossary+of+Commerce+Finance+and+Shipping

//**__Currency__**//: the money used in a country (Euros, dollars, yen, etc.) //**__Cash__**//: money in notes (banknotes) and coins //**__Bank deposits:__**// money that people and organisations have in bank accounts. //**__Salary:__**// money paid monthly by an employer //**__Wages:__**// money paid by the day or the hour, usually received weekly //**__Overtime:__**// money received for working extra hours //**__Commission:__**// money paid to salespeople and agents – a certain percentage of the income the employee generates //**__Bonus__**//: extra money given for meeting a target or for good financial results //**__Fees__**//: money paid to professional people such as lawyers and architects //**__Social security:__**// money paid by a company or the government to a retired person. //**__Living expenses__**//: money spent on everyday needs such as food, cloths and public transport //**__Bills__**//: requests for the payment of money owed for services such as electricity, gas and telephone connections //**__Rent__**//: the money paid for the use of a house or flat //**__Mortgage:__**// repayments of money borrowed to buy a house or flat //**__Health insurance__**//: financial protection against medical expenses for sickness or accidental injuries //**__Tax:__**// money paid to finance governments spending //**__Liabilities:__**// obligations to pay other organisations or people, money that the company owes or will owe at the future day. These often include loans, taxes that will soon have to be paid, future pension payments to employees, and bills from suppliers. //**__Suppliers__**//: companies which provide raw materials or parts //**__Granting credit:__**// if the suppliers have given the buyer a period of time before they have to pay for the goods //**__Share capital__**//: the money the company raised by selling its shares //**__Retain earnings:__**// profits from previous years that have not been distributed as dividends //**__Cash flow statemet:__**// financial statement which show how much money a company has spent or received during a year //**__Interest__**// : the amount paid to borrow the money //**__Shareholders__**// : the people who invest money in shares //**__Share Capital__**// : the money shareholders provide //**__Investors :__**// individuals and financial institutions //**__Bonds__**// : loans that pay interest and are repaid at a fixed future date //**__Debt__**// : money that is owed to other people or businesses //**__Working Capital or Funds__**// : the money that a business uses for everyday expenses or has available for spending //**__Revenue__**// : all the coming into a company during a given period //**__Profit, earnings or net income__**// : revenue minus the cost of sales and operating expenses //**__Dividend :__**// the part of profit that a company pays to its shareholders //**__Balance Sheet__**// : a financial statement which shows the company's assets, its liabilities and its capital //**__Profit and loss__**// : a financial statement which shows the company's revenues and expenses during a particular period, such as three months or a year //**__Liabilities :__**// obligations to pay other organisations or people : money that the company owes, or will owe at a future date //**__Retained earnings__**// : profits from previous years that have not been distributed //**__Fixed Assets__**// : used by the business for a long time //**__Current Assets :__**// things that will probably be used by the business in the near future //**__Cash :__**// money available to spend immediately //**__Net worth or net assets__**// : assets minus liabilities //**__Current liabilities__**// : expected to be paid within a year of the date of the balance sheet //**__Creditors :__**// suppliers of goods or services to the business who are not paid at the time of purchase //**__Deferred taxes__**// : money that will have to be paid as tax in the future, although the payment does not have to be made now //**__Accrued expenses__**// : expenses that have accumulated or built up during the accounting year but will not be paid until the following year, after the date of the balance sheet //**__Share premium__**// : money made if the company sells shares at above their face value //**__Face value__**// : the value written on the shares //**__Reserves__**// : funds set aside from share capital and earnings, retained for emergencies or other future needs //**__Sales revenue or turnover__**// : the total amount of money received during a specific period //**__Cost of sales or cost of goods sold__**// : the costs assosiated with making the products that have been sold, such as raw materials, labour and factory expenses. //**__Gross Profit__**// : the difference between the sales revenue and the cost of sales Selling, general and administrative expenses (SG&A) : expenses that have to be deducted from gross profit, such as rent, electricity and office salaries //**__EBITDA__**// : earnings before interest, tax, depreciation and amortization //**__EBIT__**//: earnings before interest and tax //**__Cash flow statement__**// : gives details of cash flows - money coming into and leaving the business · Operations: day-to-day activities · Investing : buying or selling property, plant and equipment · Financing : issuing or repaying debt, or issuing shares //**__Statement of total recognized gains and losses (STRGL)__**// : showing any gains and losses that are not included in the profit and loss account, such as revaluation of fixed assets __Absolute advantage or comparative advantage__//** __:__ Countries are the cheapest in the world, they are only more efficient than some others countries in producing certain goods or services. __Bill of lading:__ is a document signed by the carrier or transporter confirming that the goods have been received for shipment.
 * __Debtors__** : companies or people who owe money they will have to pay in the near future
 * __Anticipate the loss__** : company thinks a debt will not be paid
 * __Work-in-progress__** : a stock of raw materials
 * __Tangible assets__** : assets with a physical existence - things you can touch - such as proparty, plant and equipment
 * __Accumulated depreciation charges__** : the amount of cost that has already been deducted
 * __Brand names__** : protected names for a company's products
 * __Patents__** : exclusive rights to produce a particular new product for a fixed period
 * __Trade marks__** : names or symbols that are put on products and cannot be used by other companies.
 * //__Free trade__//**__:__ people and companies should be able to buy goods from all countries, without any barriers when they cross frontiers.
 * //__Comparative cost principle__//**__:__ is that countries should produce whatever they can make the **//most cheaply.
 * //__Economies of scale:__//** reduced production costs because of large-scale production.
 * //__Imports:__//** are goods or services bought from a foreign country.
 * //__Exports:__//** are goods or services sold to a foreign country.
 * //__Balance of trade or trade surplus:__//** a country that exports more goods than it imports has a positive.
 * //__Trade deficit__//**__:__ the opposite of trade surplus.
 * //__Visible__//**__:__ trade in goods.
 * //__Invisible:__//** Services such as banking, insurance and tourism.
 * //__Balance of payments__//**__:__ adding invisibles to the balance of trade.
 * //__Protectionism:__//** restricting imports in order to help local products.
 * //__Quotas__//**__:__ limits to the number of products which can be imported.
 * //__Dumping:__//** selling goods abroad at below cost price in order to destroy or weaken competitors or to earn foreign currency to pay for necessary imports.
 * //__Documentary credit:__//** payment for imported products.
 * //__Exporter:__//** a company which sells goods or services to other countries.
 * //__Importer:__//** a company which buys products from other countries.
 * //__Irrevocable:__//** documentary credits cannot be changed unless all the parties involved agree.
 * //__Irrevocable credits:__//** guarantee that the bank which establishes the letter of credit will pay the seller if the documents are presented within the agreed time.
 * //__Bill of exchange or draft:__//** Payment demand, written or drawn up by an exporter, instructing an importer to pay a specific sum of money at a future date.
 * //__Endorse:__//** a bill is to guarantee to pay it if the byer of goods does not.
 * //__In transit__//**__:__ while being transported.
 * //__Commercial invoice__//**__:__ contains detail of the goods.
 * //__Incoterms__//**__:__ companies exporting or importing goods use standard arrangements.
 * //__Additional costs:__//** the costs on top of the cost of the goods.
 * //__Documentation:__//** preparing all the necessary documents.
 * //__Customs clearance:__//** completing import documents and paying any import duties or taxes and transport insurance.
 * //__FCA__//** __**//or Free Carrier://**__ means that the goods are delivered to a named place where the carrier can load them onto a truck, train or airplane.
 * //__FAS or Free Alongside Ship:__//** means that seller delivers the goods to the quay next to the ship in the port.
 * //__FOB or Free On Board:__//** means that the seller pays for loading the goods onto the ship.
 * //__CFR or Cost and Freight:__//** used for ocean freight, the buyer is responsible for insurance.
 * //__CPT or Carriage Paid :__//**used for air freight and land freight, the buyer is responsible for insurance.
 * //__CIF or Cost, Insurance and Freight__//** :used for ocean freight ,the seller arranges and pays for insurance.
 * //__CIP or Carriage and Insurance Paid__//** :used for air freight and land freight, the seller arranges and pays for insurance.
 * //__DAF or Delivered At Frontier__//**__:__ the importer is responsible for preparing the documentation and getting the goods through customs.
 * //__DES or Delivered Ex Ship__//**__:__ the buyer pays for unloading the goods from the ship.
 * //__DEQ or Delivered Ex Quay__//**__:__ the seller pays for unloading the goods from the ship to the quay, and for the payment of customs duties and taxes.
 * //__DDU or Delivered Duty Unpaid__//**__:__ the buyer pays any import taxes.
 * //__DDP or Delivered Duty Paid__//**__:__ the seller pays any import taxes.