SBE Individual Certification: Finance & Distribution

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Information that a business keeps in its accounting records includes its: goods and services, revenues and expenses.

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revenues and expenses.

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This is the amount of money left after ALL business costs and expenses have been subtracted from all business income.

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Net Profit

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A method of bookkeeping where one entry is made for each financial transaction (revenue or expense), just like in your checkbook. It is not self-balancing, so errors are more common.

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Single-Entry Bookkeeping

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This accounting method states that every financial transaction has equal and opposite effects in at least two different accounts. It requires that the debit amounts must always equal the credit amounts. A debit refers to an entry on the left side of an account, and a credit refers to an entry on the right side of an account.

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Double-Entry Booking

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This will measure how well a company manages its cash position and how well the company generates cash to pay its debts and fund its operating expenses.

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Cash Flow Statement

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This is total revenue generated by the business minus just the cost of the goods sold.

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Gross Profit

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This term is used to describe the unexplained loss of inventory (products) from a business.

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Shrinkage

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This term refers to the ways in which products reach customers and where the products can be purchased.

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Distribution

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This term refers to the items kept in stock by the business. Example: cups, lids, straws, milk, syrups, sauces.

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Inventory

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This term refers to the procedures used to properly inspect new shipments for accuracy, spoilage, or damage.

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Receiving