Accounts prepared under the double-entry bookkeeping system, where the retained earnings figure on the profit and loss account matches the increase in net worth on the balance sheet, subject to changes like capital injections.
Balance-Sheet Total refers to the total net worth of an organization, encompassing both fixed and current assets minus long-term liabilities. It is an important metric in financial reporting and is particularly relevant in the qualification criteria for small and medium-sized company exemptions.
Effective Net Worth is the sum of a firm's net worth and its subordinated debt, providing a more comprehensive view of financial health from the perspective of senior creditors.
Equity represents a beneficial interest in an asset, net asset value, or shareholders' interest in a company. It is a critical component in personal finance, corporate finance, and accounting.
A financial statement is a written record of the financial status of an individual, association, or business organization. It includes a balance sheet, an income statement (or operating statement or profit and loss statement), and may also include a statement of changes in working capital, net worth, and cash flow.
A medium-sized company must meet specific criteria to qualify for certain filing exemptions, making the preparation of financial statements crucial. Companies that are public, banking, or insurance firms, or fall under certain categories cannot claim these exemptions.
A medium-sized group is a defined financial categorization of companies that meet specific criteria regarding net worth, turnover, and number of employees. This term is used for regulatory and reporting purposes.
A micro-entity is a very small company that meets specific criteria for turnover, net worth, and number of employees, allowing it to present simplified annual accounts under certain regulatory frameworks.
A millionaire is an individual whose net worth exceeds $1 million, typically calculated by totaling their assets and subtracting liabilities. This status often signifies significant financial achievement and can be attained through various means such as inheritance, business success, investments, or a combination of these.
An individual whose overall assets exceed $1 million but are not liquid cash. These assets could be in the form of securities, real estate, or other investments.
An economic measure that represents the sum total of the value of all capital and goods held within a nation. It encompasses the net value of all assets owned by residents and businesses of a country at a particular time.
Net Asset Value (NAV) is a measure used to value a mutual fund or an exchange-traded fund (ETF) and represents the market value of these investment assets minus their liabilities, typically expressed on a per-share basis.
Net worth represents the total value of an organization after deducting its liabilities from its assets. This financial metric is crucial for assessing the financial health and stability of an entity.
Owners' Equity refers to the beneficial interest in an organization held by its owners. It is the sum of its total assets less its total liabilities.
Under UK company law, a small company is a private company satisfying certain criteria related to net worth, turnover, and the number of employees.
A small group is a classification under the Companies Act where specific size criteria meet and allow exemptions for certain financial reporting requirements.
The Statement of Partners' Capital, typically presented on the balance sheet, indicates the net worth of each partner's interest in a business partnership.
Wealth refers to the value of all assets owned by an individual or entity, minus all outstanding debts. It serves as a stock measure of financial well-being, distinct from income, which is a flow measure of financial performance over a period.
A wealth tax is an annual levy on the total value of personal assets, which may include stocks, bonds, real estate, and other types of property. This tax is designed to address wealth inequality by taxing individuals based on their net worth rather than their income.
