Key terms (2.3.1) Flashcards
(12 cards)
Cash definition
an asset of a business which can come from investors lenders or customers
Cost of sales definition
the cost of inventory bought or produced
Gross profit definition
revenue - cost of sales
Gross profit margin definition
gross profit / sales revenue x 100
Operating profit definition
gross profit - other operating expenses
Operating profit margin definition
operating profit / sales revenue x 100
Profit definition
is recorded straight away after sales
total revenue - total sales
Profit for the year margin / net profit definition
net profit / sales revenue x 100
Profit for the year / net profit definition
operating profit - interest
Profitability definition
profit as a proportion of sales
Statement of comprehensive income definition
a document to show income and expenditure of a business over a financial year
Tax definition
a charge made by governments on activities earnings and income of individuals and businesses
