Start up ________ (finance needed by new businesses to pay for non- current and current assets before it can begin trading)
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Income statement
________: shows if the business is making a PROFIT or LOSS.
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Statement
________ of financial position: a financial account which shows what the business is worth at any given period of time.
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Cash
________: the actual money the business has in its bank account.
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Gross profit
________= revenue-cost of sales.
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Reward
________ for risk taking- profits ________ entrepreneurs for taking risks and allowing payments to be made.
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Revenue expenditure
________ (money spent on day- to- day expenses* do not involve the purchases of long- term assets)
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Capital expenditure
________ (money spent on non- current assets which will last for more than a year)
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Source of finance
________- profits after payments to owners are a very important source of finance for businesses.
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Indicator of success
________- if some businesses are profitable, profit can be an indicator for other businesses as to whether producing similar goods or services would be profitable.
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Profit
________ can be increased by increasing total revenue or decreasing total costs.
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Capital
________: money invested into the business by the owners.
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Accounts
the financial records of a firms transactions
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Income statements
a financial statement that records the income of a business and all costs incurred
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Profit = Total revenue
Total costs
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Cash
the actual money the business has in its bank account
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Trading account
shows the information at the top of a cashflow forecast (revenue and cost of sales), and how to calculate gross profit
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Revenue/sales/sales revenue/total revenue
the amount earned from the sales of products
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Cost of sales
the cost of purchasing the goods used to make the products sold
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Cost of sales = cost per unit x number of sales Gross profit
the difference between revenue and cost of sales
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Gross profit = revenue
cost of sales
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Expenses
the day-to-day costs of running a business
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Net profit
the actual profit after expenses (not including gross profit) have been paid
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Net profit = gross profit
expenses/overheads
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Reward for enterprise
entrepreneurs may have important qualities and characteristics and profit rewards them for this)
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Reward for risk taking
profits rewards entrepreneurs for taking risks and allowing payments to be made
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Source of finance
profits after payments to owners are a very important source of finance for businesses
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Indicator of success
if some businesses are profitable, profit can be an indicator for other businesses as to whether producing similar goods or services would be profitable
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Statement of financial position
a financial account which shows what the business is worth at any given period of time
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Business assets
something owned by the business
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Liabilities
something owed by the business
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Capital
money invested into the business by the owners
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Income statement
shows if the business is making a PROFIT or LOSS
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Assets
Inventories, Van/truck, Debtors, Cash
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Liabilities
Overdrafts, Mortgages, Trade creditors
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capital
Start up ________ (finance needed by new businesses to pay for non- current and current assets before it can begin trading)
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Accounts
________: the financial records of a firms transactions.
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Profit
________ can be increased by increasing total revenue or decreasing total costs.
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Accounts
the financial records of a firms transactions
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Income statements
a financial statement that records the income of a business and all costs incurred
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