CONTINGENCIES

An event that may likely occur but it is not likely or intended. It is basically a possibility. The condition of being dependent on chance, it is not 100% certain.

DEBTORS
People or organizations who owe the firm money. There are different terms applied to the due date of the debt, this all depends on the firm. However the dept. must be paid in the present year.

GEARING
Measures the proportion of capital employed that is provided by long term lenders.

NEGATIVE VARIANCE
A negative variance takes place when the value is less than planned or budgeted. For example, if the raw materials cost less than expected, then this would mean that a negative variance takes place.

OVERDRAFTS
Short term borrowings from a bank, usually used by firms to make up for working capital shortages. This are generally cleared within 6 months.