TL C4.1 Common Terms in Financial Reporting

Front

Sales turnover

Back

The total revenue generated from sales before any deductions.

Front

Revenue

Back

The income generated from normal business operations.

Front

Profit and loss statement

Back

A financial statement summarizing revenues, costs, and expenses.

Front

Accounting period

Back

The span of time covered by financial statements.

Front

Balance

Back

The amount of money held in an account.

Front

Gross profit

Back

Sales revenue minus the cost of goods sold.

Front

Net profit

Back

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Front

Break-even point

Back

The level of sales at which total revenues equal total costs.

Front

Income statement

Back

A financial statement that shows a company's revenues and expenses.

Front

Balance sheet

Back

A financial statement that reports a company's assets, liabilities, and shareholders' equity.