calculated as price X quantity sold

money to make or produce any product

turnover - cost of sales=

•the profit at business makes on selling its products.

all of the indirect costs of an enterprise

•Administration

•the salaries of managers

•utility bills

•Advertising

this is an example of ...

deducted from gross profit to give net profit

•the money made from selling a product after all costs have been deducted from gross profit

referred to as the ‘bottom line’, because it is the actual profit that can be returned to the owners of the enterprise or reinvested to help the enterprise grow

•its revenue is greater than cost of sales if the gross profit is ...

Revenue - Cost of sales = Gross profit - Expenses =

something that an enterprise (or the owner of enterprise) owns

•does not change in the short term

•the owner of an enterprise will use to make money

•stock

•debtors

•cash in the bank is ....

something an enterprise owes -- including all the money:

• an enterprise owes to the other enterprises

•that needs to be returned to the customers

•borrowed from a bank.

•trade credit to suppliers

• a bank overdraft

loans that can be repaid over a longer period of time

Current assets-Current Liabilities=

the working capital of an enterprise is..