Learning Aim F: Personal and Business Finance Flashcards
A financial document showing a company’s income and expenditure over a particular time period, usually one year. It measures gross and net profit.
Statement of Comprehensive Income
Income received from selling goods and services.
Sales Revenue
The direct costs needed for production. = opening stock + purchases - closing stock
Cost of sale/good sold
The costs of operating a business
Expenses
= Sales revenue - cost of goods sold
Gross Profit
= Gross Profit - Expenses
Net Profit
Depreciation A decrease or loss in value of an asset
Depreciation
A statement that records the values of a business´s assets, liabilities and equity at one point in time
Statement of Financial Position
Items owned by the business for more than one year
Non-current assets
Cash and other assets expected to be exchanged for cash or consumed within a year
Current Assets
Liabilities due within a short time, usually within a year
Current Liabilities
Shows the money available in the business to fund day to day expenditure.
= Current assets - current liabilities.
Net Current Assets
Value of debts of the business that will be payable after more than one year
Non-Current Liabilities
= Non current assets + net current assets - long term liabilities
Net Assets
Money invested in a business
Capital
