Accounting and Business Studies Flashcards

Comprehensive fill-in-the-blank practice flashcards covering income statements, business success factors, entrepreneurship, and organizational goals based on the provided lecture materials.

An __________ shows the performance of a business over a specified period of time and includes income, expenses, and a calculation of profit or loss.

Income statement

According to the financial elements of accounting, __________ is defined as 'increases in assets or decreases in liabilities which cause an increase in equity, and are not a contribution by the owner'.

Income

A(n) __________ is defined as 'a decrease in assets or increase in liabilities which causes a decrease in equity, and is not a distribution to the owner'.

Expense

The equation used to calculate __________ is Sales revenue minus Cost of sales.

Gross profit

The 'bottom line' of an Income statement shows the __________ of the business.

Net profit

To calculate the final profit figure after all costs are deducted, the equation is: Gross profit + Other income - Expenses = __________.

Net profit

A __________ provides clear direction for a business over the next $1-3$ years and is helpful when applying for loans.

Business plan

The cash flowing in and out of a business on a daily or monthly basis is known as __________.

Cash flow

One way to improve cash flow by decreasing the amount of money going out is to examine __________ and look for areas where costs can be reduced.

expenses

The KPI known as __________ indicates the rate at which employees are leaving a business, which can reflect employee loyalty.

labour turnover

A(n) __________ person is defined as someone who is creative, innovative, and flexible in a range of situations.

enterprising

The quality of __________ is defined as being clever at finding out what you do not know.

resourcefulness

__________ is the development of a new method, idea, or product, or the improvement of the efficiency of existing practices.

Innovation

A(n) __________ is a person who sets up a business or businesses, taking on financial risks in the hope of profit.

Entrepreneur

A __________ explains why an organization exists and its core purpose.

Mission Statement

In financial goals, the profit goal of __________ means making enough profit to make the owners comfortable.

Satisficing

__________ is calculated as the value of a business's sales as a proportion of total sales by all businesses in that market.

Market share

In New Zealand, approximately $70\%$ of small businesses fail within the first __________ years.

five

When income equals expenses, a business is said to be __________.

Breaking Even

The Māori word __________ means 'origin' or 'reason for being' and often involves a multiple bottom line approach.

Pūtake

The formula for the Gross profit ratio used to analyse profitability is $\frac{\text{Gross profit}}{\text{Sales}} \times 100$, and for Phone City in 2018, the answer was __________.

$$69\%$$

According to the lecture, the __________ shows the performance of a business over a specified period of time.

Income statement

Common business documents such as EFTPOS receipts, invoices, and __________ are used to measure sales and purchases.

cash register tapes

Income is defined as increases in __________ or decreases in liabilities which cause an increase in equity, and are not a contribution by the owner.

assets

An expense is defined as a decrease in assets or increase in liabilities which causes a decrease in equity and is not a __________ to the owner.

distribution

The equation for Sales revenue is $Selling price \times \text{Units sold} = \text{\_\_\_\_\_\_\_\_\_\_}$.

Sales revenue

The equation for Gross profit is $Sales revenue - \text{\_\_\_\_\_\_\_\_\_\_} = \text{Gross profit}$.

Cost of sales

The equation to find Net profit is $Gross profit + \text{Other income} - \text{\_\_\_\_\_\_\_\_\_\_} = \text{Net profit}$.

Expenses

For Phone City in 2018, the Gross profit ratio was __________.

$$69\%$$

A __________ __________ provides clear direction for a business over the next 1-3 years and is helpful when applying for loans.

business plan

__________ __________ is defined as the cash flowing in and out of the business on a daily/monthly basis.

Cash flow

One method to improve cash flow by decreasing the money going out is to __________ costs or debt repayments over a longer period.

spread

The KPI known as __________ __________ measures the rate at which employees are leaving a business.

labour turnover

__________ describes the degree to which consumers know a brand, which is only favorable if they think positively of it.

Brand recognition

The quality of an enterprising person called __________ involves seeing opportunities and solutions.

Vision

The slang term for the quality of determination used in the lecture is __________.

Stickability

__________ is the activity of setting up a business and taking on financial risks in the hope of profit.

Entrepreneurship

A __________ __________ explains why an organisation exists or its core purpose.

mission statement

The profit goal of __________ means making enough profit to make the owners comfortable.

Satisficing

The business goal of __________ is defined as when the Income matches the Expenses precisely.

Breaking Even

The Māori word __________, meaning 'origin' or 'reason for being', reflects goals spanning social, environmental, spiritual, and economic dimensions.

Pūtake

In New Zealand, approximately __________ of small businesses fail within the first five years.

$$70\%$$

For Phone City Ltd in 2018, the total expense figure was __________.

$$220\,000$$