Finance 3

6. Money spent on a regular basis to keep a business running (also known as running costs)
8. The cost of producing a product
9. Occurs when revenue is more than expenditure

1. Traders to whom the business owes money because they have supplied goods or services (also known as trade payables)
2. Money the business can raise quickly which is calculated by deducting current liabilities (all current debts owed by the business) from current assets (all money owed to the business at the current time) (also known as net current assets)
3. Money that a business spends
4. People who owe money to the business for goods or services they have received (also known as trade receivables)
5. Amounts of money which a business owes
6. The everyday running costs of the business
7. The money made from selling a product (the sales revenue) after the cost of producing that product (cost of sales) have been deducted