1. 5 th Accounting Analysis and Interpretation of Financial Statements

2. Debentures 6% Debentures (2017/2018) - Debentures are long term loans. They will be repaid in full during the years 2017/2018. They carry a fixed annual rate of interest of 6%. 7% Debentures (2016/2017): Debentures are Long-term Loans. The fixed annual rate of interest is 7%.Loan must be paid back in one lump sum during the year 2016/2017.

3. Intangible Assets Intangible Assets - These are assets that have real value but we cannot see. Examples are patents and goodwill.

4. Ordinary Dividend Ordinary Dividend - The part of the net profit paid out to the Ordinary Shareholders. They are paid after the preference shareholders. The rate is decided by the Directors

5. Capital Employed Capital Employed This is the total amount invested in the business. It is made up of Issued Share Capital plus reserves plus long-term liabilities.

6. Shareholders Funds: The amount owed to the shareholders by the Company. It consists of the Issued Capital and Reserves.

7. Depreciation: This is the loss in value of a Fixed Asset during the year because of usage or the passage of time. A business will decide on a suitable %.

8. Interest Paid: This is the extra money paid back to the lender for the use of money borrowed from a Bank

9. Gearing Also called Leverage refers to the capital structure of a firm. There are two ways to finance business – Debt Capital and Equity Capital. Debt captial is borrowing and preference shares Equity capital is ordinary shareholders funds which only receive a dividend if the firm can afford it.

10. Liquid Assets Current Assets which are readily convertible into cash. They comprise of bank, cash, debtors, short term investments.

11. Dividends Dividends is the portion of company profit given to shareholders. It is the return on their investment in the company. Preference shareholders get a fixed return and ordinary sharholders dividend depends on the level of profits available in any year.

12. Shareholders funds Shareholders funds is the total investment by shareholders in a company. It is made up of issued share capital plus reserves.

13. Memorandum of Association A Memorandum of Association is a document which governs a company’s dealings with the outside world. It states the company name, its objects, its limited liability and its authorised share capital

14. Articles of Association The Articles of Association is a document which governs the internal conditions of a company. It states the rights of shareholders, the procedures for meetings and any other internal regulations.

15. 8% Cumulative Preference Shares This is a share entitled to a fixed return of 8% per anum. The return is payable before any payment to ordinary shareholders. If dividends are unpaid, due to insufficient profits, the dividend is carried forward or accumulated to a future date.