What is gross profit?

Money left from goods sold less the buying price

What is sales turnover?

Total sales made in a given time

People who owe the business money

What is working capital?

Less current liabiltiies and less current assets

Any costs business has to pay in order to trade

Sales once damaged goods have been removed

How do you calculate sales turnover?

Multiplying the number of goods sold by the price

What are long term liabilities?

Debt that needs to be paid for over a number of years

Money used to set up the business

Someone who can lend you money e.g. bank

What are current assets?

Things business owns that can be turned into cash quickly

What are current liabilties?

Debts that need to be paid within a year

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Applied Business 2.3 - Key Terms

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Applied Business - 2.3 Key terms test

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Questions 15

Answers

1
What is gross profit?
Total money made from sales
Money left from goods sold less the buying price
Money left once cost of production has been minus
Money left once tax has been paid
2
What is sales turnover?
Money business has lost
Money business has to spend on materials
Total sales made in a given time
Sales
3
What are fixed assets?
E.g. sales of goods
E.g. buildings, machinery
E.g. office equipment
E.g. materials, stock
4
What is a debtor?
People who owe part of the business
People who owe the business money
People who have savings
Someone who can lend you money e.g. bank
5
What is working capital?
Less current liabiltiies and less revenue
Less current liabiltiies and less fixed assets
Less current liabiltiies and less current assets
Less long term liabiltiies and less current assets
6
What are expenses?
Any costs business has to pay in order to trade
Only fixed costs
Only variable costs
Costs on materials only
7
What is net sales?
Sales once damaged goods have been removed
Sales once tax has been removed
Sales once costs of materials have been removed
Sales once wages have been removed
8
How do you calculate sales turnover?
Multiplying the number of goods sold by the price
Multiplying the number of goods sold by the damaged stock
Dividing the number of goods sold by the costs
Dividing the number of goods sold by the price
9
What is net profit?
Gross profit once turnover has been deducted
Gross profit less cost of sales
Net profit once tax has been deducted
Gross profit less expenses
10
What are long term liabilities?
Debt that has to be paid within 12 months
Debt that needs to be paid for over a number of years
Stock that has high value
Debt that is an asset
11
What is capital?
Money used to may creditors
Money used to set up the business
Money used to run the business
Money used to pay of debts
12
What is a creditor?
Someone who can lend you money e.g. bank
People who owe part of the business
People who owe the business money
People you have savings
13
What are cost of sales?
Actual cost of producing goods
Total cost of all goods sold by the business
The amount the customer has to spend on goods
How many sales the business has made in the last year
14
What are current assets?
Things business owns that can be turned into cash quickly
Assets with high value
Assets with low value
Things the business owns that cannot be turned into cash
15
What are current liabilties?
Debts that are little concern
Debts that need to be paid within a year
Stock that you need to sell quickly
Debts that need to be paid for after a year

Applied Business 2.3 - Key Terms Flashcards | StudBud