Income statement terms Flashcards
(18 cards)
sales revenue
units sold x selling price
cost of sales
cost of buying your stock/inventory
opening inventory
Stock that was bought last year but sold this year
Closing inventory
Stock that was bought this year but not sold
Gross profit
sales revenue minus the cost of sales
Expenses
cost of running your business
Profit for the year
Gross Profit minus Expenses
no current assets
items that your business will own for over a year
current assets
items your business will own for less than a year
current liabilities
debts your business has that will have to be paid within a year
trade receivables
those who ow you money that has to be paid within a year
trade payables
those who you owe money to
working equity
current assets- current liabilities
net worth
how much your business is worth in a particular point in time
non current liabilities
debts your business will have for more than a year
Drawings
cash or stock that the owner has taken out of the business for their own personal use
opening equity
the money owner used to start up a business
dividends
the share of the profits that shareholders receive in return for their investments
