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Unit 5 - Business Accounting - Key Terms - Pt 1 Flashcards | StudBud
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Unit 5 - Business Accounting - Key Terms - Pt 1
Unit 5 - Business Accounting - Key Terms - Pt 1
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Answers
1
What is the purpose of Record Transactions?
Record of all money coming in, or going out of the business
To show income of a business
Record financial transactions to show business performance
to show expenditure of a business
2
Which important consequence could happen, if a business doesn't record financial transactions?
Slump in profits
Could loose money
Could receive fines or even imprisonment of key personnel
Gross profit could increase
3
Who is responsible for planning, monitoring and controlling financial resources of a business?
Person who records money coming in, or out of the business
finance administrator
The administrator at a business
The manager of a business
4
What is Gross profit?
Total profit after tax
Company's total revenue, minus the cost of goods sold
Money which the business owes
Money which the business is owed
5
Why do businesses monitor financial activity?
To see if sales or expenses have declined or risen
To see how well their competitors are performing
Record of all money coming in, or going out of the business
To see how well managers are performing
6
What is Value owed to?
Money which the business is owed
Money which the business owes another company
Total profit after tax
Company's total revenue, minus the cost of goods sold
7
What is a book-keeper?
A librarian who loves books
Person who records money coming in, or out of the business
The administrator at a business
The manager of a business
8
Why do managers need to understand business finance?
to compile spreadsheets easier
To help understand a balance sheet
So they can help design profit and loss accounts
Able to make better decisions and plan for the future
9
What is Net Profit?
Total profit after tax
Money which the business is owed
Money which the business owes
Company's total revenue, minus the cost of goods sold
10
What is the purpose of accounting?
To show income of a business
Record financial transactions to show business performance
to show expenditure of a business
To demonstrate how wealthy a company is
