Finance Flashcards
VAT
Tax charged by the Government on the sale of services and goods to the consumer.
Capital gains
Profit from the sale of property.
Expenditure
Spending funds or the amount spent.
Revenue
Income
Gross profit
Profit when production/ marketing costs are removed.
Net profit
Profit when working expenses, not included in gross profit, have been paid
Turnover
Money made in a particular period
Balance sheets
Statements recording the income and outcome during a particular time
Cash flow
Money transferred in and out of a business
Liquidity
Availability of money
Debtors
Owe money
Creditors
Person who is owed money
Capital
Wealth owned for a purpose
Break even
Profits = costs
Depreciation
Reduction in value of an asset
Fixed liabilities
Debts that will take over a year to pay
Current liabilities
Debts that can be paid within the current year
Fixed assets
Purchased long term
Current assets
Assets expected to be converted to cash within a year
