Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsOwners’ EquityOverheadsProfitPurchase OrderReceivablesRevenueRetained ProfitReservesWorking CapitalWork-in-progressAmount of capital contributed to form the businessor added laterCosts that are not directly associated with theproducts or services sold by the businessIncome minus expensesA commercial document issued by a buyer to aseller, indicating the type, quantity and agreed pricesfor products or services the seller will provide to thebuyerAmount that are owed to a business (sometimesreferred to as debtors)Income that the business earns from its operationsProfi ts that have not been distributed to the ownersRetained profi ts that are held for a specifi c purpose orthe result of revaluation of assetsExcess of current assets over current liabilitiesWhere an order has been taken from the customerand the business is in the process of “working” tocomplete the order8chapter 1 01-21 Eng.indd 88/15/11 5:01:22 PM