AQA GCSE Business STudies Unit 2- Finance

?
View mindmap
  • Finance
    • Key terms
      • profit and loss account
        • This shows whether the business made a profit or loss over the last period (usually a year)
        • also known as an income statement
      • Balance sheet
        • this lists thevalue of a companie's assets and liabilities
      • Assets
        • Items of value owned by a busness (e.g. offices, stock, etc)
      • Liabilities
        • Debts owed by a business (e.g. to suppliers)
      • liquidity
        • how easy it is for a business to pay off it's short-term debts
      • sales revenue
        • the value of goods sold
        • sales revenue = number of goods sold x price
      • cost of sales
        • the cost to the business of goods sold
      • gross profit
        • the difference between sales revenue and the cost of making the product sold
        • gross proft = sales revenue - cost of sales
      • overheads
        • expenses of the business that aren't directly part of the production process (e.g. office space)
      • net profit
        • the difference between sales revenue and the total cost of running the business
        • net profit = gross profit - overheads
    • Balance sheets
      • Interpreting balance sheets
    • Profit and loss accounts

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Finance resources »