Chapter 8: Finance Flashcards Preview

GCSE AQA Business Studies Unit 1 and Unit 2 > Chapter 8: Finance > Flashcards

Flashcards in Chapter 8: Finance Deck (14):
1

Retained Profit

Profit kept in the business after tax and dividends have been paid.

2

Sale and Leaseback

Selling an asset, such as a building, to a leasing company and paying an annual leasing charge so that the asset can still be used.

3

Profit and Loss Account

This shows whether the business made a profit or loss over the last period. It is also known as the income statement.

4

Sales Revenue

The value of goods sold.

5

Cost of Sales

The cost to the business of the goods sold.

6

Gross Profit

The difference between sales revenue and cost of making the products sold.

7

Overheads

Expenses of the business that are not directly part of the production process.

8

Net profit

The difference between sales revenue and the total costs of the business.

9

Gross Profit Margin

The percentage of sales revenue that is gross profit.

10

Net Profit Margin

The percentage of sales revenue that is net profit.

11

Balance Sheet

This lists the value of a company's assets and liabilities.

12

Assets

Item of value owned by a business.

13

Liabilities

Debts owned by a business.

14

Liquidity

How easy it is for a business to pay it's short-term debts.