revenue costs and profits

Question 1

what is the purpose of accounting?

Answer 1

recording transactions
management of business
compliance
measuring performance
control

Question 2

what can sales revenue also be called?

Answer 2

• Income
• Revenue
• Turnover
• Sales
• Total Revenue
• Sales Turnover

Question 3

what is sales revenue for a business?

Answer 3

Results from the trading activities of the business (money a business receives from selling
goods/services)

Question 4

what are costs?

Answer 4

Costs are the amounts that a business incurs in order to make goods and/or provide services.

Question 5

what are fixed costs?

Answer 5

Fixed costs: costs which do not change when the output of a business increases. (e.g. when more products made)

Question 6

what are semi variable costs?

Answer 6

Semi-variable costs: costs which change directly with the output of a business but also has a fixed element.

Question 7

what are variable costs?

Answer 7

costs which change directly with the output of a business (e.g. increase when you make more products and decrease when you make less products)

Question 8

what is profit?

Answer 8

The money that is left from sales once all costs have been paid.

Question 9

what is profit

Answer 9

surplus achieved when total revenue from sales is higher than the total costs of a business

Question 10

what is loss?

Answer 10

shortfall suffered when total revenue from sales is lower
than the total costs of a business

Question 11

what is gross profit?

Answer 11

The amount of profit left after the cost of producing the goods or service is taken away from the sales revenue

Question 12

what is net profit?

Answer 12

The amount of profit made after all other expenses have been deducted e.g. rent and advertising