SPIS Toolbox - Finance - Glossary - Revision history

Ranisha at 14:41, 22 November 2018

2018-11-22T14:41:49Z

Stefan Eibisch at 15:27, 12 July 2018

2018-07-12T15:27:02Z

Ranisha at 14:44, 27 November 2017

2017-11-27T14:44:16Z

Ranisha at 13:26, 13 November 2017

2017-11-13T13:26:34Z

Ranisha at 07:25, 22 September 2017

2017-09-22T07:25:38Z

Ranisha at 07:23, 22 September 2017

2017-09-22T07:23:47Z

Ranisha at 07:23, 22 September 2017

2017-09-22T07:23:19Z

Ranisha at 16:48, 21 September 2017

2017-09-21T16:48:07Z

Ranisha at 13:56, 20 September 2017

2017-09-20T13:56:05Z

Show changes

Ranisha at 15:28, 18 July 2017

2017-07-18T15:28:33Z

← Older revision		Revision as of 14:41, 22 November 2018
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−	{{SPIS ~~Banner~~}}{{Back to SPIS Toolbox}}	+	{{SPIS Banner2}}{{Back to SPIS Toolbox}}

	== '''<span style="color:#879637">Glossary</span>'''<br/> ==		== '''<span style="color:#879637">Glossary</span>'''<br/> ==

@@ Line 81: / Line 81: @@
 |-
 | style="width: 251px" | '''Net Working Capital'''
-| style="width: 497px" | Current assets minus current liabilities.
+| style="width: 497px" | Current Assets minus Current Liabilities.
 |-
 | style="width: 251px" | '''Operating expenses (OPEX)'''<br/>
-| style="width: 497px" | Are the ongoing costs for running a business that are related with the operation and maintenance of it. They are the expenses related to the production activity of the business and they are divided into fixed and variable costs.<br/>
+| style="width: 497px" | Are the ongoing costs for running a business that are related with the operation and maintenance. They are the expenses related to the production activity of the business and they are divided into fixed and variable costs.<br/>
 |-
 | style="width: 251px" | '''Payback Period (PP)'''<br/>
@@ Line 90: / Line 90: @@
 |-
 | style="width: 251px" | '''Profitability'''<br/>
-| style="width: 497px" | Income minus expenses. Is stated in the income statement (or Profit and Loss Statement), which reports a company's revenue, expenses, and net income over a period of time.<br/>
+| style="width: 497px" | Income minus expenses. It is stated in the income statement (or Profit and Loss Statement), which reports a company's revenue, expenses, and net income over a period of time.<br/>
 |-
 | style="width: 251px" | '''Raw Material Purchases'''<br/>

@@ Line 27: / Line 27: @@
 |-
 | style="width: 251px" | '''Credit Sales'''<br/>
-| style="width: 497px" | Sales made without receiving cash.]<br/>
+| style="width: 497px" | Sales made without receiving cash.<br/>
 |-
 | style="width: 251px" | '''Current Assets'''<br/>
@@ Line 48: / Line 48: @@
 |-
 | style="width: 251px" | '''Fixed Assets'''<br/>
-| style="width: 497px" | Assets required for long-term use and for physical use in the business (machinery,buildings, office equipment, cars, etc.).<br/>
+| style="width: 497px" | Assets required for long-term use and for physical use in the business (machinery, buildings, office equipment, cars, etc.).<br/>
 |-
 | style="width: 251px" | '''Fixed Cost'''<br/>
@@ Line 66: / Line 66: @@
 |-
 | style="width: 251px" | '''Internal Rate of Return'''<br/>
-| style="width: 497px" | Gives the discount rate over the lifespan of a capital investment; i.e. the profit rate generated by a certain investment (amount) over its lifespan. By calculating IRR of a project you can answer the question whether the money is well spent or if less risky investment alternatives might be more profitable in the long run, e.g. putting the money on a bank account to get interest on it.<br/>
+| style="width: 497px" | Gives the discount rate over the life-span of a capital investment; i.e. the profit rate generated by a certain investment (amount) over its life-span. By calculating IRR of a project you can answer the question whether the money is well spent or if less risky investment alternatives might be more profitable in the long run, e.g. putting the money on a bank account to get interest on it.<br/>
 |-
 | style="width: 251px" | '''Liabilities'''<br/>
@@ Line 72: / Line 72: @@
 |-
 | style="width: 251px" | '''Life Cycle Costing'''<br/>
-| style="width: 497px" | Is a technique for evaluating total cost of ownership to compare different alternatives.<br/>
+| style="width: 497px" | A technique for evaluating total cost of ownership to compare different alternatives.<br/>
 |-
 | style="width: 251px" | '''Material Stocks'''<br/>
@@ Line 78: / Line 78: @@
 |-
 | style="width: 251px" | '''Net Present Value'''<br/>
-| style="width: 497px" | Determines the present worth of an investment by discounting the cash inflows and cash outflows generated by this investment over its lifespan. For the determination of the NPV you need to define the expected life span of the investment as well as a discount factor, which might be near to the interest rate on deposits. You could also use the NPV for comparison of alternative investment options.<br/>
+| style="width: 497px" | Determines the present worth of an investment by discounting the cash inflows and cash outflows generated by this investment over its life-span. For the determination of the NPV you need to define the expected life span of the investment as well as a discount factor, which might be near to the interest rate on deposits. You could also use the NPV for comparison of alternative investment options.<br/>
 |-
 | style="width: 251px" | '''Net Working Capital'''
@@ Line 87: / Line 87: @@
 |-
 | style="width: 251px" | '''Payback Period (PP)'''<br/>
-| style="width: 497px" | Is the length of time required to recover the cost of an investment''.''<br/>
+| style="width: 497px" | The length of time required to recover the cost of an investment''.''<br/>
 |-
 | style="width: 251px" | '''Profitability'''<br/>

@@ Line 101: / Line 101: @@
 | style="width: 497px" | Cost that varies directly with the level of production delivered.<br/>
 |}
 {{SPIS Reference}}

← Older revision		Revision as of 07:25, 22 September 2017
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−	{{SPIS ~~Finance~~}}{{Back to SPIS Toolbox}}	+	{{SPIS Banner}}{{Back to SPIS Toolbox}}

	== '''<span style="color:#879637">Glossary</span>'''<br/> ==		== '''<span style="color:#879637">Glossary</span>'''<br/> ==

@@ Line 1: / Line 1: @@
 {{SPIS Finance}}{{Back to SPIS Toolbox}}
@@ Line 37: / Line 36: @@
 |-
 | style="width: 251px" | '''Depreciation'''<br/>
-| style="width: 497px" | A cost charged against fixed assets for their replacement.
+| style="width: 497px" | A cost charged against fixed assets for their replacement.<br/> Note: “depreciation” is one of the few expenses for which there is no associated outgoing cash flow.
 |-
 | style="width: 251px" | '''Expenses / expenditure'''<br/>

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 {{SPIS Finance}}{{Back to SPIS Toolbox}}
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 | style="width: 251px" | '''Cash Inflows'''<br/>
 | style="width: 497px" | All cash receipts realized within a given period (e.g. from sales).<br/>
 |-
 | style="width: 251px" | '''Cash Outflow'''<br/>
@@ Line 33: / Line 37: @@
 |-
 | style="width: 251px" | '''Depreciation'''<br/>
 | style="width: 497px" | A cost charged against fixed assets for their replacement.
-Note: “depreciation” is one of the few expenses for which there is no associated outgoing cash flow.<br/>
 |-
 | style="width: 251px" | '''Expenses / expenditure'''<br/>
@@ Line 51: / Line 56: @@
 | style="width: 497px" | Costs that do not vary with the level of production.<br/>
 |-
-| style="width: 251px" | '''Fixed Investment:'''<br/>
+| style="width: 251px" | '''Fixed Investment'''<br/>
 | style="width: 497px" | Investment made in fixed assets (e.g. machinery).<br/>
 |-
@@ Line 100: / Line 105: @@
 |}
+<br/>{{SPIS Reference}}

← Older revision		Revision as of 16:48, 21 September 2017
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−	{{SPIS ~~Banner~~}}{{Back to ~~Finance~~}}	+	{{SPIS Finance}}{{Back to SPIS Toolbox}}

	== '''<span style="color:#879637">Glossary</span>'''<br/> ==		== '''<span style="color:#879637">Glossary</span>'''<br/> ==

@@ Line 98: / Line 98: @@
 | style="width: 497px" | cost that varies directly with the level of production delivered.<br/>
 |}
 {{SPIS Reference}}