Chapter 8: Finance Flashcards Preview

GCSE AQA Business Studies Unit 1 and Unit 2 > Chapter 8: Finance > Flashcards

Flashcards in Chapter 8: Finance Deck (14)
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1
Q

Retained Profit

A

Profit kept in the business after tax and dividends have been paid.

2
Q

Sale and Leaseback

A

Selling an asset, such as a building, to a leasing company and paying an annual leasing charge so that the asset can still be used.

3
Q

Profit and Loss Account

A

This shows whether the business made a profit or loss over the last period. It is also known as the income statement.

4
Q

Sales Revenue

A

The value of goods sold.

5
Q

Cost of Sales

A

The cost to the business of the goods sold.

6
Q

Gross Profit

A

The difference between sales revenue and cost of making the products sold.

7
Q

Overheads

A

Expenses of the business that are not directly part of the production process.

8
Q

Net profit

A

The difference between sales revenue and the total costs of the business.

9
Q

Gross Profit Margin

A

The percentage of sales revenue that is gross profit.

10
Q

Net Profit Margin

A

The percentage of sales revenue that is net profit.

11
Q

Balance Sheet

A

This lists the value of a company’s assets and liabilities.

12
Q

Assets

A

Item of value owned by a business.

13
Q

Liabilities

A

Debts owned by a business.

14
Q

Liquidity

A

How easy it is for a business to pay it’s short-term debts.