Learning Aim C Key Words Flashcards
Definition of financial transactions
Actions by a business that involve money either going into or out of a business
Definition of HMRC
It is a brutish government department responsible for the collection of types of taxes
Definition of fraud
When an individual squires company money for personal gain through illegal action
Definition of profit
Total revenue from sales is high than the total costs of a business
Definition of loss
Shortfall suffered when total revenue from sales is lower than the total cost
Definition gross profit
Sales revenue minus cost of good sold the cost of the actual materials used to produce the quantity of good sold
Definition sales revenue
Quantity sold multiplied by the selling price
Definition of net profit
Gross profit minus other expenses
The actual profit left
Definition trade receivables
Money owed to the business from sales but not paid yet
Definition for trade payables
Money the business owes from supplies purchased but not yet paid for
Definition of fixed assets
Items of value owed by a business that are likely to stay in the business for more than one year
Definition of asset
Any item of value owed by an individual or firm
Definition of commission
Is a fee paid to a salesperson in exchange for services in facilitating or completing a sales transaction
Definition of capital item
Assets bought from capital expenditure such as machinery and vehicles that will stay in the business
Definition of statement of financial situation
Document that shows the net worth of a business by balancing its assets
