Finance

Question 1

Revenue

Answer 1

Quantity x Selling Price

Question 2

Sales Revenue

Answer 2

units sold x Sales Price

Question 3

Turnover

Answer 3

the amount of money taken by a business in a particular period

Question 4

Sales Turnover

Answer 4

the total amount of revenue generated by a business during the calculation period

Question 5

Total Revenue

Answer 5

Total income of a business

Question 6

Sales Volume

Answer 6

Number of units sold within a reporting period

Question 7

Fixed Costs

Answer 7

The same amount of money going out every month

Question 8

Variable Costs

Answer 8

Costs that can change

Question 9

Total Costs

Answer 9

Variable Costs + Fixed Costs

Question 10

Profit

Answer 10

Revenue - Total Costs

Question 11

Trade credit

Answer 11

Buy Now Pay Later

Question 12

Stock

Answer 12

The Products

Question 13

Long term Finance

Answer 13

Long term solution for finance

Question 14

Short term Finance

Answer 14

Short term solution for finance

Question 15

Personal Savings

Answer 15

Your own money that you have saved

Question 16

Share Capitals

Answer 16

The part of the capital of a company that comes from the issue of shares

Question 17

Shareholders

Answer 17

Different people that own parts the same business

Question 18

Venture Capitalist

Answer 18

An investor with contacts and qualities of their own

Question 19

Loan

Answer 19

An investor with contacts and qualities of their own

Question 20

Collateral

Answer 20

Something pledged as a security for repayment of a loan to be forfeited in the event of a default

Question 21

Mortgage

Answer 21

When you don’t have enough money you ask the bank to buy a the expensive object and you pay them back over many years along with interest until it is paid off

Question 22

Dividend

Answer 22

A sum of money paid regularly by a company to its shareholders out of its profit

Question 23

Retained Profit

Answer 23

Profit kept in the company rather than paid out to shareholders as a dividend

Question 24

Break Even Formula

Answer 24

Fixed Costs divided by

Selling price – variable cost

Question 25

Contribution

Answer 25

Looks at the profit on individual products.

Question 26

Average Unit Costs

Answer 26

Average cost = total cost divided by the output

Question 27

Margin Of Safety

Answer 27

The money after the break-even point

Question 28

Debit Card

Answer 28

When you have a card with your own money

Question 29

Direct Debit

Answer 29

Normally a regular amount of money taken from the bank account typically to pay bills

Question 30

Credit Card

Answer 30

When you can borrow a certain amount of money and you have to pay back with interest

Question 31

Contactless

Answer 31

When you pay on a card or a phone without having to use money or type in a pin

Question 32

Invoice

Answer 32

A document sent by the seller indicating the products, quantities and agreed prices for products or services.

Question 33

Purchase Order

Answer 33

It details the items the buyer agrees to purchase at a certain price point

Question 34

Credit Note

Answer 34

A receipt given by a shop to a customer who has returned goods

Question 35

Receipt

Answer 35

Written acknowledgement that something of value has been transferred from one party to another