test 3

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what is Gross Profit
the money made from selling a product {the sells revenue} after the cost of producing the product {cost of sales} has been deducted
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what is Net Profit
the money made from selling a productafter all costs {expenditure} has been deducted from the gross profit
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what is an income statement
this shows how a business has performed financially over a period of time, usually a year.
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what is on an Income Statement
income from sales, cost of sales, gross prpfit, {overheades}, wages, utilites, net profit.
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what is a Statement of Financial Position
they show what money has been invested in the business
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what is on a Statement of Financial Position
the assets{debtors[trade receivables]} fixed assets {van} current assets{debtors} current liabilities {bank overdraft} long-term liabilities{loans} money invested, retained profits
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what is Capital and other ways of funding the business
{capital} money spent by the business on items which should last a long time{assets} share holders, managers, employees, suppliers, customers, the goverment {HMRC}, competitors
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How a business can become more successful
break-even analysis and cash flow forecasting
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what is Working capital
money the business can raise quickly which is calculated by deducting current liabilities{all current debt owed by the business}from current assts {all money owed to the business at the current time}
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what is an income statement also known as
profit and loss account
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what is a statement of financial position also called
balance sheet
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what is working capital also known as
net current assets
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Other cards in this set

Card 2

Front

what is Net Profit

Back

the money made from selling a productafter all costs {expenditure} has been deducted from the gross profit

Card 3

Front

what is an income statement

Back

Preview of the front of card 3

Card 4

Front

what is on an Income Statement

Back

Preview of the front of card 4

Card 5

Front

what is a Statement of Financial Position

Back

Preview of the front of card 5
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