GDP (Gross domestic product)

The value of all goods and services created within an economy in a given year. It is equal to total consumer and government spending, investment, plus the value of exports, minus the value of imports.


Term used to describe the level of a company’s net debt (net of cash or cash equivalents) compared with its equity capital, usually expressed as a percentage. A heavily geared company has a high proportion of financing from debt, such as bank loans.


Otherwise known as a gilt edged security, this is a fixed rate bond/security issued by the UK government.

GNP (Gross national product)

Equal to GDP plus the income accruing to domestic residents as a result of investments abroad, minus the income earned in domestic markets accruing to foreigners abroad.

Going concern concept

Presumption made when preparing financial statements that a business will continue to exist for the foreseeable future, usually considered to be a period of one year or greater.


The value of a business to a purchaser over and above its net asset value, reflecting the value of intangible assets such as reputation and brand name.