Term 1 & 2 Flashcards
1
Q
finances def.
A
money or funds
2
Q
capital def.
A
what the owner puts into their business
3
Q
assets def.
A
possessions that are used to run a business
4
Q
assets example
A
- land/buildings - property occupied by business
- equipment - e.g. computers, furniture …
- vehicles - cars, delivery trucks, motor bikes
- money in the bank - cash
5
Q
liabilities def.
A
the debts of a business
6
Q
loan def.
A
money borrowed from a financial institution such as a bank
7
Q
suppliers def.
A
businesses that a business buys items from
8
Q
credit def.
A
buy now and pay later
9
Q
interest def.
A
money earned on money you save in a bank
10
Q
goods def.
A
products that a business sells
11
Q
services def.
A
work done for the benefit of another
12
Q
income def.
A
money earned by a business
13
Q
expenses def.
A
the running cost of a business
14
Q
income terms
A
- Sales - income from selling goods
- Current income - income from providing services
- rent income
- Interest income
- Commission income
15
Q
Expenses terms
A
- water & electricity
- stationery
- products
- wages
- advertising
16
Q
profit def.
A
the amount by which income is greater than expenditure