- Record financial transactions, these figures produce financial information.
1 of 23
1. Record transactions
Keeps business up to date, is important for smooth runnind of a business.
2 of 23
1. Management of the business
Manager is responsible for the planning, monitioring and controlling of the resources for which they are responsible for.
3 of 23
1. Compliance
Financial reporting is governed by laws and regulations. Ensures that any financial records give a fair and accurate picture of the business.
4 of 23
2. Gross profit
Amount of profit left after the cost of producing the good or service is deducted from the sales revenue.
5 of 23
2. Net profit
The smaller amount of profit made after all other expenses are deducted from the gross profit.
6 of 23
2. Value owed to the business
Money owed to the business from sales that have not been paid for yet.
7 of 23
2. Value owed by the business
Money the business owes to others for goods/services purchased but not yet paid for.
8 of 23
3. Capital income (CI)
Money invested by owners or other investors that is used to set up business or buy additional equiptment.
9 of 23
3. Loans (CI)
Money lent to the business from a bank or other financial institution.
10 of 23
3. Mortgages (CI)
Similar to bank loan, longer sum of money. 25 years.
11 of 23
3. Shares (CI)
Shareholders own paets of the business and all contribute to capital income.
12 of 23
3. Owners capital (CI)
Money invested in business from owners personal savings.
13 of 23
3. Debentures (CI)
Medium to long-term sources of capital income. Large companies often use them to secure income.
14 of 23
4. Revenue income (RI)
Money that comes into the business from performing its day-to-day function of selling goods and providing a service.
15 of 23
4. Sales (RI)
Money coming in from the sales of goods or services.
16 of 23
4. Rent recieved (RI)
Business that owns property and charges others for the use of it.
17 of 23
4. Commission recieved (RI)
Business sells products/services as agent of another business. Commission is the percentage of money from sale to agent business.
18 of 23
4. Interest recieved (RI)
Money earned on savings or lending.
19 of 23
4. Discount recieved (RI)
Business is given a percentage off a sale, normally in return for quick payment or a bulk order.
20 of 23
5. Expendicture
Money spent by business (expenses).
21 of 23
5. Non-current assets (CE capital)
Items owed by business that will remain in the business for a long period of time.
22 of 23
5. Intangibles (CE)
Goodwill - Exisiting business, reputation already known. Patents - Legal protection of an invention. Trademarks - Symbol, logo, brand name, words/colours that represent business. Brand name - Feature of business that is recognised by customers.
23 of 23
Other cards in this set
Card 2
Front
Keeps business up to date, is important for smooth runnind of a business.
Back
1. Record transactions
Card 3
Front
Manager is responsible for the planning, monitioring and controlling of the resources for which they are responsible for.
Back
Card 4
Front
Financial reporting is governed by laws and regulations. Ensures that any financial records give a fair and accurate picture of the business.
Back
Card 5
Front
Amount of profit left after the cost of producing the good or service is deducted from the sales revenue.
Comments
No comments have yet been made