GLOSSARY
Some relevant financial definitions
Terms defined in International Financial Reporting Standards (IFRSs) are followed in brackets by the equivalent terms that were used in previous editions of this book.
Accounting rate of return (ARR) or Return on investment (ROI) Average annual profit generated by a project as a percentage of the capital employed in it.
Accrued expense or Accrual A service received or expense incurred for which payment has not yet been made.
Accrued income or Accrued revenue Work done for which payment has not yet been received.
Acid test ratio Same as quick ratio.
Administrative expenses In a published income statement, the sum of all the non-financial expenses of the business except cost of sales.
Allocation A charge ...
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