Statement of financial document Flashcards
What is an invoice?
A request for payment from the supplier to the buyer.
What is a debit card?
A physical card which allows you to spend money directly from your own current account.
What is a credit card?
A physical card which allows you to spend money directly from a bank which is not linked to your own current account?
What is a receipt?
Created by the seller to give proof to the buyer that the order has been paid for.
What is a delivery note?
Created by the buyer and given to the seller when a delivery is made to give details of the delivery. The customer can check the items received with this.
What is market segmentation?
Refers to the customers or group of
people the business is aiming their
products at.
What is a start up cost?
The costs involved in starting the business
Cash
Using physical money to pay for a good /
service.
Direct Debit
Is when you tell your bank to make a bill
payment from your bank account on a
specific future date. This could be regular
monthly payments e.g. Loan, phone bill.
Fixed costs
Salaries, wages, rent, insurance, loan repayment.
Variable costs
Delivery, ingredients/stock, taxes.
Revenue
Revenue is the money that is made by the business before deducting the costs.
Profit
Profit is the difference between the Revenue of a business and
its Expenditure (total costs).
Net profit
Net profit = gross profit - expenses
Gross profit
Gross profit = total sales - cost of sales
