Unit 3 and 4 Vocabulary

Front

What does Expenses represent in an Income Statement?

Back

The costs associated with running the business, including cost of goods sold, operating expenses, and interest payments.

Front

What is a budget?

Back

A plan for how to spend money.

Front

What is the definition of 'Expenditure'?

Back

An amount of money you spend.

Front

What are 'Monthly Living Expenses'?

Back

The amount of money you spend on bills that vary in cost from month to month.

Front

What is a 'Balance' in banking terms?

Back

The amount of money in your account.

Front

What is the purpose of an Income Statement?

Back

To provide a summary of revenues and expenses over a specific period, showing the net profit or loss.

Front

What is 'Revenue'?

Back

The total income generated from sales of goods or services before any expenses are deducted.

Front

What does 'Net Profit' mean?

Back

The amount of money remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Front

What is 'Fixed Expense'?

Back

An expense that does not change with the level of goods or services produced, such as rent.

Front

What is 'Variable Expense'?

Back

An expense that varies directly with the level of production or sales, such as raw materials.