finance Flashcards
what is a cash budget
a prepared in advanced document planned for monthly cash incomings and outgoings
what is opening balance
this is the amount of money you have available at the beginning of the month.
what is a closing balance
this is the cash left at the end of the month after all payments have been taken away from the business receipts
what is an income statement
shows the business financial performance over a given time e.g one year
shows final figures
what is sales revenue
the amount of money received for selling goods or services
what is gross profit
the profit made from buying and selling goods before all other expenses are deducted
how is gross profit calculated
sales revenue - cost of sales
what is expenses
this is all the indirect costs incurred by the business such as rent and wages
what is profit for the year
the actual profit made by the business after all expenses have been deducted
