Learning Aim F Key Words

Question 1

Definition of statement of comprehensive income

Answer 1

Shows if business has made a profit or a loss by deducting expenses from revenue

Question 2

Definition of statement of financial position

Answer 2

Snapshot of business net worth at a particular moment in time

Question 3

Definition of cost of goods sold

Answer 3

Actual value of inventory used to generate sales

Question 4

Definition of opening inventory

Answer 4

The value of inventory in a business at the start of the year

Question 5

Definition of closing inventory

Answer 5

The value of inventory at the end

Question 6

Definition of historic cost

Answer 6

The cost of an asset when it was first purchased

Question 7

Definition of expected life

Answer 7

How long an asset is expected to be used within a business

Question 8

Definition of residual value

Answer 8

Value of asset when it is disposed

Question 9

Definition of capital employed

Answer 9

The total amount of capital tied up in business

Question 10

Definition of interfirm

Answer 10

Between different firms

Question 11

Definition of intrafirm

Answer 11

Within the firm

Question 12

Definition of stakeholder

Answer 12

Anyone with an interest in the activities of the business

Question 13

Definition of liquid

Answer 13

Not easily converted into cash

Question 14

Definition of business to business

Answer 14

One business sells to another

Question 15

Definition of business to consumer

Answer 15

One business sells to an individual