Tangible fixed assets
The sum of Fixed Assets and Intermediate Assets.

Intangible assets
Assets, which do not possess any material value. Will
include goodwill, trademarks, patents and copyrights,
at their amortised book value. These are assets with
no “physical” existence, but are deemed to confer
benefits to the business in future periods.

Total fixed assets The total of tangible and intangible
fixed assets.

Stocks
Trading stocks, sundry stocks and work in progress net
of progress payments.

Trade debtors
Trade debtors, bills receivable and amounts recoverable
on contracts due within one year. For smaller companies,
when the figure is not disclosed, the figure shown
represents total debtors.

Cash
Cash includes the following : Cash in hand; Cash at
bank; Cash at bank and in hand; Cash balances.

Miscellaneous current assets
Short term assets other than stocks, trade debtors or
cash. Includes items such as:- Bank balances; Bank
account (where not negative); Bank deposit account;
Building society deposit. Short term deposits; Bank
current account; Sundry debtors; Amounts due from
group and related companies; Called up share capital
not paid; Prepayments and Accrued income; Current
asset investments (where these are not short term
deposits).

Total current assets
The sum of Stocks, Trade Debtors, Cash and
Miscellaneous Current Assets.

Total assets
The total of Current and Total Fixed Assets.

Creditors: Amounts falling due within one year
Also referred to as Total Current Liabilities, being the
sum of Trade Creditors, Bank Overdraft and
Miscellaneous Current Liabilities.

Total assets less current Liabilities
Total Assets minus Total Current Liabilities.

Total long term liabilities
The sum of Long Term Bank Loans, Other Long Term
Finance and Other Long Term Liabilities.

Total liabilities
The sum of Current and Long Term Liabilities.

Share capital and reserves
The sum of Called Up Share Capital and Sundry
Reserves.

P&L account reserve
The accumulation of profits/losses from previous
trading periods including the retained profit/loss from
the Profit and Loss Account.

Revaluation reserve
Also known as investment revaluation reserve, property revaluation reserve, and unrealised capital gains on
valuation.

Shareholders’ funds
The sum of Called Up Share Capital, Sundry Reserves,
P&L Account Reserve and Revaluation Reserve.

Capital employed
The sum of Shareholders’ Funds and Total Long Term
Liabilities.

Net worth
Shareholders’ funds minus intangibles. Often referred
to as the book value of the business. The long-term
realisable value after all liabilities are cleared.

Working capital
Obtained by subtracting total current liabilities from
the total current assets. This represents the surplus /
deficiency of funds from normal trading activities.

Contingent liabilities
These items are extracted from the notes to the accounts
and include all ‘potential’ liabilities such as guarantees, indemnities, cross guarantees, HM Revenue & Customs,
letters of credit and VAT registration.