Income Flashcards

1
Q

What is income?

A

Income is money enterprises receive from the sale of goods and services and from assets

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2
Q

What is the most common form of income?

A

The most common form of income is income from sales.

Income from sales is known as
1) Revenue
or
2) Turnover

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3
Q

What are the main types of revenue?

A

The main types of revenue are:
1) Cash sales
2) Credit sales
3) Commission received
4) Maintenance contracts
5) Repairs

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4
Q

The main types of revenue are cash sales, credit sales, commission received, maintenance contracts and repairs.

1) Cash sales:
What are cash sales?

A

Cash sales are from over-the-counter sales

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5
Q

The main types of revenue are cash sales, credit sales, commission received, maintenance contracts and repairs.

2) Credit sales:
What are credit sales?

A

Credit sales are from sales using a method of credit such as a credit card

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6
Q

The main types of revenue are cash sales, credit sales, commission received, maintenance contracts and repairs.

3) Commission received:
What is commission received?

A

Commission received is when an enterprise acts as an agent for another enterprise and receives a percentage of every sale

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7
Q

The main types of revenue are cash sales, credit sales, commission received, maintenance contracts and repairs.

4) Maintenance contracts:
What are maintenance contracts?

A

Maintenance contracts are when an enterprise agrees to regularly service a product, usually annually, to keep it in working order

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8
Q

The main types of revenue are cash sales, credit sales, commission received, maintenance contracts and repairs.

5) Repairs:
What are repairs?

A

Repairs are when an enterprise repairs or services a product previously purchased by a customer

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9
Q

Calculating revenue:
Revenue = ?

A

Revenue = Sales x Price per unit

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10
Q

Calculating revenue:
Revenue = Sales x Price per unit.

For example, a high street mobile phone shop sells 15 phones at £600 per phone.

Revenue is:
?

A

For example, a high street mobile phone shop sells 15 phones at £600 per phone.

Revenue is:
Sales (15) x Price per unit (£600) = £9,000

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11
Q

What is an asset?

A

An asset is something owned by an enterprise, such as property or equipment

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12
Q

An asset is something owned by an enterprise, such as property or equipment.
An asset can be sold to …

A

An asset can be sold to generate income for the enterprise

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13
Q

Ways to generate income from assets:
1) Invest in …

A

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits

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14
Q

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put …

A

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest

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15
Q

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest
3) Sell …

A

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest
3) Sell assets such as property or equipment to raise money

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16
Q

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest
3) Sell assets such as property or equipment to raise money
4) Rent out …

A

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest
3) Sell assets such as property or equipment to raise money
4) Rent out part of the enterprise’s premises to another enterprise

17
Q

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest
3) Sell assets such as property or equipment to raise money
4) Rent out part of the enterprise’s premises to another enterprise
5) Lease or hire out …

A

Ways to generate income from assets:
1) Invest in another enterprise to receive a share of its profits
2) Put spare cash into an account that pays interest
3) Sell assets such as property or equipment to raise money
4) Rent out part of the enterprise’s premises to another enterprise
5) Lease or hire out equipment to another enterprise