Chapter 23 Flashcards

1
Q

Accounts

A

Financial records of a business’s transactions.

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2
Q

Accountants

A

Professionally qualified people who have responsibility for keeping accurate accounts
and for producing final accounts.

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3
Q

Final accounts

A

Produced at the end of the financial year and give details of the profit or loss made
over the year and how much the business is worth.

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4
Q

Income statement

A

A document that records the income of a business and all costs incurred to earn that
income over a period of time. It will show if the business has made a profit or loss.

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5
Q

Gross profit

A

Sales revenue minus the cost of sales (or cost of goods sold),

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6
Q

Sales revenue

A

Incorne to a business during a period of time from the sales of goods or services.

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7
Q

Cost of goods sold or
cost of sales

A

The direct cost of producing or buying in the goods actually sold by the business
during a time period

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8
Q

Trading account

A

This shows how the gross profit is calculated.

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9
Q

Net profit

A

Profit made after all costs have been deducted from sales revenue. It is calculated by
gross profit minus expenses. Now referred to as ‘profit’

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10
Q

Depreciation

A

The fall in value of a fixed (non-current) asset over time.

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11
Q

Retained profit

A

Net profit reinvested into a company after deducting tax and payments to owners

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12
Q

Dividends

A

Annual payments from company profits to shareholders.

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