The following technical terms appear in this chapter. Check that you know the meaning of each. (If you cannot find them again in the text, they are defined at the end of the book.)

(a) revenue

(b) capital

(c) non-current asset

(d) depreciation

(e) directors

(f ) earnings for equity holders (ordinary shareholders)

(g) earnings per share QUESTIONS 192 Part 3 Recognition in financial statements

(h) external users (of financial statements)

(i) financial position

( j) gross

(k) gross margin

(l) gross profit

(m) net

(n) net assets

(o) primary financial statements

(p) reserves

(q) revaluation reserve

(r) share premium

(s) tangible fixed assets

(t) turnover A7.6 How do companies report: (Section 7.3.1)

(a) financial position;

(b) performance; and

(c) changes in financial position?

AppendixLO1