Year 10 Accounting - Business Flashcards
Inventory
The items which will be sold to the consumers to generate income
Expense
Outflows of assets incurred by a business whilst it generates revenue
Group-One Expense
Expenses that are directly related to the promotion, distribution and provision to its goods and services
Administration Expense
Expenses that are related to the daily running of the business
Finance Cost
Expenses that are related to the business’s interest payments
Revenue
Income earned from the business’s main activity
Other Income
Additional income earned from activities other than their main business activity
Income
Inflows of assets from the business activities or investments
Income Statement
Financial Statement used to calculate the total income and the total expense of a business, which then will be used to calculate the business Profit/Loss for the year
Profit for the year
The positive amount remaining after subtracting the total expenses incurred from the total income earned over a year
Loss for the year
The negative amount remaining after subtracting the total expenses incurred from the total income earned over a year
Profitability
Profitability is a measurement of a business’s ability to generate income relative to its expenses
Trading Business
The business that mainly sells goods to generate income
Service Business
The business that mainly provides services to generate income
Sales
Revenue generated by the trading business for selling inventory to the customer
Fees received
Revenue generated by the service business for providing service to the customer
Term Deposit
The amount of money locked in a savings account for an agreed period. In return, interest will be received
Dividends
Return on investments in other company’s shares
