Money Terms Flashcards
1
Q
How to calculate gross profit
A
Sales - cost of goods
2
Q
How to calculate net profit
A
Total revenue - total expenses
3
Q
What is a fixed asset
A
Resources used over and over again for more than one year
Houses
4
Q
What is a current asset
A
Liquid resources owned by a business
5
Q
What is a current liability
A
Money that a business owes must be repaid within one year
6
Q
What is a long term liability
A
Money owed by a business 12 months +
7
Q
What is working capital
A
Money a business has to pay it’s daily bills with
Current assets - current liabilities
8
Q
What is share capital
A
Amount of money in a business that has come from the issuing of shares
9
Q
What is turnover
A
Amount of money made by business un given time
