Financial Terms Flashcards

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Revenue

Back

The total money earned from sales before expenses.

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Cost of Goods Sold (COGS)

Back

The direct costs of producing goods sold by a business.

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Gross Profit

Back

Revenue minus cost of goods sold.

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Operating Expenses

Back

Costs required to run a business, such as rent and salaries.

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Net Profit

Back

The final profit after all expenses and taxes.

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Depreciation

Back

The reduction in value of assets over time.

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Assets

Back

Items of value owned by a business.

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Liabilities

Back

Debts and obligations of the business.

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Owner’s Equity

Back

The owner’s financial interest in the business.

Front

Accounts Payable

Back

Money the business owes to suppliers.