income (revenue and turnover) Flashcards
how do enterprises receive income from?
the sales of goods and services and assets
what are income from sales known as?
revenue or turnover
main types of revenue:
what are cash sales?
from over-the-counter sales
main types of revenue:
what are credit sales?
from sales using a method of credit such as credit card
main types of revenue:
what are repairs?
when an enterprise repairs or services a product previously purchased by a customer
main types of revenue:
what is the commission received?
when an enterprise acts as an agent for another enterprise and receives a percentage of every sale
main types of revenue:
what are the maintenance contracts?
when an enterprise agrees to regularly service a product , usually annually to keep it in working order
how do you calculate revenue?
revenue = sales x price per unit
income from assets:
what is an asset?
something owned by an enterprise, such as property or equipment
income from assets:
what can an asset be sold to for?
generate income for the enterprise
ways to generate income from assets:
what can an enterprise rent out part of?
the enterprise’s premises to another enteprise
ways to generate income from assets:
what can be given to another enterprise?
lease or hire out equipment
ways to generate income from assets:
why invest in another enterprise?
to receive a share of its profits
ways to generate income from assets:
what can be put into an account that pays interest?
spare cash
ways to generate income from assets:
what can an enterprise do to raise money?
sell assets such as property or equipment
