Financial Vocabulary Flashcard

Front

What does it mean to create equal 'portions'?

Back

It means to create equal parts or shares of something.

Front

What is a 'portion'?

Back

A part of something.

Front

What is a common use of a 'mortgage'?

Back

It is commonly used for purchasing a home.

Front

When is a business considered 'profitable'?

Back

A business is profitable when its revenues exceed its expenses.

Front

What does it mean for a business to be 'profitable'?

Back

It means the business makes more money than it spends.

Front

What is the definition of 'revenue'?

Back

Revenue is the total income generated by a business from its operations.

Front

What are 'expenses' in a business context?

Back

Expenses are the costs incurred in the operation of a business.

Front

What is the difference between 'profit' and 'loss'?

Back

Profit is when revenues exceed expenses, while loss is when expenses exceed revenues.

Front

What does 'breaking even' mean for a business?

Back

Breaking even means that a business's revenues are equal to its expenses.

Front

What is an example of a 'fixed expense'?

Back

A fixed expense is a cost that does not change, such as rent.