Finance- Financial Terms

Question 1

Trading account (income statement)

Answer 1

Provides a summary of the business’s trading activity during the financial year

Question 2

Sales (income statement)

Answer 2

Monies that the business has revived from selling goods and/ or services

Question 3

Revenue (income statement)

Answer 3

The value of the business’s sales less the value of any returns

Question 4

Cost of sales (income statement)

Answer 4

The cost of the sales is added to the business i.e. Before a sales or profit margin is added