Finance GCSE Business - Profit and Loss Vocabulary

Flashcards covering key vocabulary from a Finance GCSE Business lecture on profit and loss accounts.

Profit

The difference between total revenue and total costs when revenue is greater than cost.

Stakeholders

Individuals or groups with an interest in the performance and activities of a business.

Profit and Loss Account

A financial statement showing a business's sales revenue, costs, and profit or loss over a period of time; also known as income statements.

Gross Profit

The profit made before expenses have been paid; calculated as Total Revenue minus Cost of Goods Sold.

Gross Profit Margin

The gross profit expressed as a percentage of sales; calculated as (Gross Profit / Sales) x 100.

Net Profit

The final profit made by a business after all costs have been paid; calculated as Gross Profit minus Expenses.

Net Profit Margin

The net profit expressed as a percentage of sales; calculated as (Net Profit / Sales) x 100.