unit 3 revision

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  • Created by: zainb
  • Created on: 02-11-17 13:00
Financial transactions
– Actions by a business that involve money either going into or out of a business – for example, making a sale or paying a bill.
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HM Revenue & Customs (HMRC)
HM is an abbreviation for Her (or His) Majesty’s, and the HMRC is a British government department responsible for the collection of all types of DRAFT taxes
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Fraud
–When an individual acquires company money for personal gain, through illegal actions.
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Profit
–Surplus achieved when total revenue (income) from sales is higher than the total costs of a business.
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Loss
–Shortfall suffered when total revenue from sales is lower than the total costs of a business.
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Gross profit
–Sales revenue minus cost of goods sold (the cost of the actual materials used to produce the quantity of goods sold).
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Net profit
– Gross profit minus other expenses, for example, rent and advertising.
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Trade receivables
–Money owed to the business from sales made but not yet paid for.
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Trade payable
– Money the business owes from supplies purchased but not yet paid for.
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Fixed assets
items of value owned by a business that are likely to stay in the business for more than one year – for example, machinery. Also known as non-current assets
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Asset
Any item of value owned by an individual or firm.
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Commission
– A commission is a fee paid to a salesperson in exchange for services in facilitating or completing a sales transaction
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Capital items
– Assets bought from capital expenditure such as machinery and vehicles that will stay in the business for more than a year.
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Statement of financial situation
– a financial document that shows the net worth of a business by balancing its assets against its liabilities
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Depreciation
– An accounting technique used to spread the cost of an asset over its useful life.
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Sales revenue
– Quantity sold multiplied by the selling price.
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Other cards in this set

Card 2

Front

HM Revenue & Customs (HMRC)

Back

HM is an abbreviation for Her (or His) Majesty’s, and the HMRC is a British government department responsible for the collection of all types of DRAFT taxes

Card 3

Front

Fraud

Back

Preview of the front of card 3

Card 4

Front

Profit

Back

Preview of the front of card 4

Card 5

Front

Loss

Back

Preview of the front of card 5
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