Managing Business Activities Flashcards

1
Q

Amortisation

A

The writing off of an intangible asset

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2
Q

Cost of sales

A

The direct costs of a business

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3
Q

Exceptional costs

A

A one-off costs such as a large bad debt

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4
Q

Gross profit

A

The difference between revenue/turnover and cost of sales

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5
Q

Gross profit margin

A

Gross profit expressed as a percentage of revenue/turnover

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6
Q

Operating Profit

A

The difference between gross profit and business overheads such as selling and administrative expenses

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7
Q

Operating profit margin

A

Operating profit expressed as a percentage of revenue/turnover

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8
Q

Profit of the year/net profit

A

The difference between operating profit and interest and exceptional items

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9
Q

Profit of the year/net profit margin

A

Net profit after tax expressed as a percentage of revenue/turnover

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10
Q

Statement of comprehensive income

A

The financial document showing the companies income and expenditure over a particular time period, usually one year

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11
Q

Revenue or turnover

A

The total income of a business resulting from sales of goods or services

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