Concepts & terms

Finance Terms – economic terms and concepts!

Common financial terms, terms and expressions in economics, bokkeeping, accounting and auditing. The most common concepts, terms and expressions that you should know that you have to keep apart when working with ongoing bookkeeping, accounting or auditing.

Revenue / Revenue

What is the difference between revenue and income?

Revenue

A revenue is the amount that the Company has accrued / billed before tax for goods and services. It has thus not amortized income, but it could be related to several periods.

Revenue

One benefit is an accrued income, ie income is has been recorded (periodiserats) in the period it relates to (earned through).

Expenses / Costs

What is the difference between expenses and costs?

Expense

An expense (cost) incurred in the purchase of resources (assets) and refers to the price (value) at the time of acquisition. The expenditure will be determined at the time of delivery, but in practice the starting point is often when you have received the invoice (then the final value determined on paper).

Cost

A cost (expense) arising from the consumption of resource (availability).

Expenditure may never affect the income statement, but it does however cost.

Receipts / Disbursements

What is the difference between inflows and outflows?

En inbetalning sker när pengar tas emot (for example the sale of a commodity) och en utbetalning sker när pengar betalas ut (for example the purchase of a commodity).

Occurs only when money has changed hands.