an agreement which is carried between buyer and a seller to exchange asset of payment.
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(HMRC) Her Majesty's Revenue and Customs
is a non-ministerial department of the UK government responsible for the collection of tax
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Fraud
Is a criminal deception intended to result in financial or personal gain
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Profit
sales revenue - total costs
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Loss
Is the amount of money lost in a business or organization
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Gross profit
sales - the cost of sales
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Sales Revenue
quantity sold x the selling price
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Net profit
Is the actual profit after the working expenses gross profit - other expenses
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Trade payables
The money the business owes from supplies purchased but not yet paid for. THE BUSINESS OWES
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Trade receivables
The money owed to the business from sales made but not yet paid for. THEY OWE THE BUSINESS
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Capital income
capital income is the money used to set up a business. it is a long term investment.
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Fixed assets
Items of value owned by a business that are really likely to stay in business for more than one year. For example machinery. Also known as non-current assets.
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Revenue income
This is income received by the business on sales of its goods and services.
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expenditure
money spent by the business
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Capital expenditure
These are assets - capital items - that the business plans to use over a long period of time. there are 2 types of assets - non-current (tangible) and intangible.
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Revenue expenditure
the day-to-day costs incurred in running a business
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Capital items
assets bought from capital expenditure such as machinery and vehicle that will stay in the business for more than a year.
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Statement of financial position
a financial document that shows the net worth of a business by balancing its assets against its liabilities. It is often called a balance sheet
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Trademarks
is a symbol or word that represent a company
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Goodwill
it's represents the business
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patents
t's a license that you can sell your products for a certain number of years
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Brand name
is name given by the marker for the product
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capital expenditure
Is used to buy capital items which are long term asset.
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inventory
a list of items such as property, and goods in stock. revenue expenditure
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Discount allowed
when the seller grants discount to buyers. revenue income
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rent
regular payment to a landlord. revenue expenditure
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Administration
the activity of running the company. revenue expenditure
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depreciation
the value of the asset reduces
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types of revenue expenditure
water insurance administration- paperwork required to run a business telephone - administrative cost postage - administrative cost stationery and printing- administrative cost salaries - annual sum of money marketing - reducing-balance depreciation straight-line depreciation wages bank charges interest paid (on mortgages/loans) discount allowed inventory rent rates heating and lighting.
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capital expenditure non current assets/ tangible
land buildings and premises machinery and equipment vehicles fixtures and fittings
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capital expenditures intangible assets
Goodwill patents trademarks brand names
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revenue income
credit sales - through sales using a method of credit
rent received - when a business rents out a property it owns
commissions received - when a business acts as an agent for another business and receives a percentage of every sale
interest received - money owned on saving or lending
discount received - when a business pays a reduced price for goods and services
cash sales - through over the counter sales
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capital income
mortgage shares loan debentures - a type of bond issued by large companies to raise money. owners capital
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