Financial Statements Flashcards
turnover
the amount of money taken by a business in a particular period
/ the replacement rate of employees
revenue
income generated from normal business activities, including discount and deductions for returned merchandise
total sales
grand total of all sales revenues a business generated from normal activities
income
money received for work or through investments
expenditure
the action of spending funds / the amount of money
production costs
incurred by manufacturing a product or providing a service
cost of goods sold
direct cost of producing the goods sold
gross profit
profit after deducting costs associated with making / selling
= revenue - cost of goods sold
overhead
business expenses not directly attributed to production
operating expenses
expense incurred through normal operations
non-operating expense
not related to main activity; lawsuit, depreciation
EBIT
indicator of profitability; operating earnings, profit
EBITDA
measure of overall financial performance; alternative to net income
interest / rate of interest
money paid regularly at particular rate for use of money lent / delaying repayment
corporation tax
tax levied on company’s profits (with different rates according to profits)
