Comp 3 LA b Flashcards

1
Q

Financial records

A

Documents that give an accurate record of all trading.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Start-up costs

A

Spend on items before enterprise can start trading.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Running costs

A

Day to day costs to run the enterprise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fixed costs

A

Costs that have to be paid even if no goods are sold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Variable costs

A

Costs directly related to number of items sold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Turnover

A

Total revenue received in a financial period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Cost of sales

A

Direct costs to make the products sold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Expenses

A

Indirect cost to run the enterprise eg: rent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Assets

A

Something the enterprise owns.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Liabilities

A

Something the enterprise owes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Capital

A

Finance used to start or grow the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Statement of comprehensive income

A

Shows how an enterprise has performed financially over a period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Statement of financial position

A

Shows the finance that has been invested in the enterprise and where it has been spent over a period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Pofitability

A

Enterprise’s ability to turn revenue into profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Liquidity

A

Ability of the enterprise to pay its debts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Creditor

A

Someone who is owed money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Debtor

A

Someone who owes money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Trade credit

A

Purchase made and payment made later eg: next month.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Retained profit

A

Profit earned and kept from previous financial year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Insolvency

A

Unable to pay debt so cease trading.

21
Q

Revenue

A

sales x selling price per unit

22
Q

Total variable costs

A

sales x variable cost per unit

23
Q

Total costs

A

fixed costs + total variable costs

24
Q

Profit

A

total revenue – total costs

25
Gross profit
Turnover – cost of sales
26
Net profit
gross profit - expenses
27
Net current assets
current assets – current liabilities
28
Gross profit margin %
= (gross profit ÷ turnover) x 100
29
Net profit margin %
= (net profit ÷ turnover) x 100
30
Current ratio
= current assets ÷ current liabilities : 1
31
Liquid capital ratio
(current assets – inventories) ÷ current liabilities : 1
32
Working capital
net current assets
33
Purchase order
List types, quantities and agreed prices. | A legal offer to buy goods/services.
34
Delivery note
States what has or hasn’t been delivered.
35
Goods received note
Confirms which goods have been received.
36
Credit note
Goods returned and customer gets refund.
37
Invoice
Amount owed and date to be paid.
38
Receipt
Proof of purchase.
39
Statement of account
Summary of recent transactions.
40
Cash
Was the most traditional form of payment for small items.
41
Credit cards
Agreed sum of credit paid off monthly with interest added.
42
Surcharge
Cost to a business if accept credit card payments.
43
Debit card
Payment taken from your bank account – PIN/contactless.
44
Direct debit
Transfer of money on agreed date to a business.
45
Payment technologies
Paypal, online checkouts.
46
Fixed assets
Does not change in the short term. | Eg: retail store, machinery, factory, fixtures and fittings.
47
Current assets
Will change with every transaction and can be changed into cash quickly.
48
Current liabilities
Short term debts that must be paid back within a year.
49
Long term liabilities
Long term debts that will take longer than a year to pay back.