6.4 Analysing the Financial Performance of a Business Flashcards
1
Q
income statement
A
a financial statement showing a business’s revenues and costs and thus, its profit or loss over a period of time
2
Q
Balance sheet
A
sets out the assets and liabilities that a business has on a particular day
3
Q
Gross profit
A
A business’s sales revenue minus its cost of sales over a period of time, typically a year.
4
Q
Net profit
A
a business’s sales revenue minus its cost of sales, its overheads and other costs over a period of time, typically a year.
5
Q
Liability
A
a sum of money that is owed by a business to another business of an individual.
6
Q
Financial ratio
A
compares two figures from a business’s financial statements.
7
Q
Stakeholders
A
Individuals and organisations that are affected by, and affect, the business.
