KEYWORDS FOR ACCOUNTING Flashcards
What is the definition of revenue, sales and turnover?
The total amount of money a business makes from selling its goods or services over a specific period.
What is gross profit?
Gross profit represents revenue after subtracting cost of goods sold (COGS)
What is net profit?
Net profit is the amount of money a business has left after deducting all expenses from its revenue.
What is Gross profit margin?
A percentage of profit made from total sales
What is inventory turnover?
It is a measure of the number of times inventory is sold or used in a time period such as a year
What are trade receivables?
Trade receivables are money a company expects to receive from customers
What are trade payables?
Trade payables are money a company owes to suppliers
What is annual credit sales?
Annual credit sales is the total amount of revenue a company makes over a year from its products or services
