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Glossary of Credit Management Terms.
Letter I
Income statement:
A business financial statement that lists
revenues, expenses, and net income throughout a given period. Because
of the various methods used to record transactions, the monetary
values shown on an income statement can often be misleading. Also
known as Earnings report,
Earnings statement, Operating
statement, or Profit
and loss statement.
Indemnity:
A promise to compensate another for a wrongdoing,
expense or loss incurred. To be distinguished from a guarantee which
relates to the obligations of another and may not be a primary obligation.
Insolvency:
An inability to pay debts as they fall due,
or where a debtor’s total assets are exceeded by his or her
liabilities. The law in this area is regulated by the Insolvency
Act 1986. To be declared insolvent, debts due to a creditor or creditors
should be in excess of £750.
Intangible assets:
Patents, trademarks, goodwill etc.
Interest expenses:
Any interest charges incurred, normally shown
as a net figure after deduction of any interest received.
Intermediate assets:
Assets more usually found in a balance sheet
under fixed assets but could include:
- Investments in, and amounts due from
subsidiaries (Gross).
- Investments in, and amounts due from
related companies (Gross).
- Trade Investments (Gross).
- Other listed and unlisted investments
e.g. shares in a racehorse, which are not part of the business
cycle of the company.
- Investment properties (where property
dealing is not an integral part of the activities of the company).
Investments:
Money invested in associated companies or
any other long-term investment. Usually stated “at cost”,
with market value also mentioned.
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