Business Definitions

7. This is the first part of the P&L account where gross profit is calculated
8. Funds set aside or saved for future use
9. This account shows whether the business has made a profit or a loss over a period of time, owners can see if they will get a return on their investment or retained profit and measure the success of t
15. Debts or obligations that must be paid within 1 year
17. Costs that are earned through its operations to earn revenue
19. Equals to the total sales revenue - cost of goods sold

1. This is the money invested in the business from the owner
2. Debts or obligations that last over a year
3. The cost that goes into creating the product/service the business is selling, these are mainly the direct costs
4. This is the last part of the P&L account where it shows where net profit is distributed
5. The total amount of money gained from the selling of stocks
6. the amount of profit that is kept in the business, saved for future use
10. Financial resources available for use
11. The government taking a percentage of your profits
12. The sum of current and long term liabilities
13. This account shows the business' financial health at a certain moment in time using the business' assets, liabilities and sources of capital.
14. Assets that are purchased for long-term use and are not likely to be converted quickly into cash, examples include buildings, land, equipment
16. The amount after overheads are subtracted from the gross profit
18. A sum of money payed regularly by a company to its shareholders from its profit, acts as an incentive for shareholders to invest in the business