Terminology in Financial Statements

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Turnover-
The total revenue a business recieves in a a given financial peiod. E.g selling products.
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Cost of Sales-
How much it costs to make or produce a product.
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Gross Profit-
The profit a business makes on selling it's products. GROSS PROFIT= TURNOVER-COST OF SALES
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Expenses-
Costs that a bujsiness must pay in order for it to run. E.g Wages
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Net Profit-
The money left when all expenses are deducted from the Gross Profit. NET PROFIT=GROSS PROFIT-EXPENSES
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Other cards in this set

Card 2

Front

How much it costs to make or produce a product.

Back

Cost of Sales-

Card 3

Front

The profit a business makes on selling it's products. GROSS PROFIT= TURNOVER-COST OF SALES

Back

Preview of the back of card 3

Card 4

Front

Costs that a bujsiness must pay in order for it to run. E.g Wages

Back

Preview of the back of card 4

Card 5

Front

The money left when all expenses are deducted from the Gross Profit. NET PROFIT=GROSS PROFIT-EXPENSES

Back

Preview of the back of card 5

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