Financial Statement Flashcards
1
Q
Turnover
A
Total revenue
2
Q
Cost of sales (direct costs)
A
Costs that are involved in directly marketing a product (direct costs) and would include raw materials and wages
3
Q
Expenses
A
Other expenses a business has to pay and are known as indirect costs
(Bills, fuel costs, advertising, rent, insurance, loan repayments, salaries)
4
Q
Gross profit
A
Profit a business makes before taking into account other expenses (indirect costs)
5
Q
Net profit
A
Profit a business earns when all expenses have been deducted
6
Q
Costs of sales (direct costs or costs of goods)
A
Costs directly associated with what the business sells or makes
(Stock, raw materials, packaging, wages)
