A-level Business Studies Lesson 29 (3.5.1 L2)

Question 1

Profit

Answer 1

The difference between the total revenue of a business and its total costs. Profit = total revenue minus total costs.

Question 2

Cash flow

Answer 2

The amount of money flowing into and out of the business over a period of time.

Question 3

Depreciation

Answer 3

The fall in value of an asset over time, reflecting the wear and tear of the asset as it becomes older, the reduction in its economic use or its obsolescence.