Key Terms IB Business Management

3. Money available for immediate use by the business.
4. receivables Amounts owed to a business by customers who bought on credit.
6. Customers who owe money to the business.
7. assets Long-term assets used by a business for more than one year.
8. Goods or materials held by a business for sale or production.
10. revenue Income earned from the sale of goods or services.
14. assets Short-term assets expected to be used or turned into cash within one year.
15. sheet A financial statement showing a business’s assets, liabilities, and equity at a specific point in time.
18. payables Amounts owed by a business to suppliers for goods or services bought on credit.
20. When total costs are greater than total revenue.
21. profit The profit left after all expenses are deducted from gross profit.
22. Goods and materials held by a business for future use or sale.
24. The total income earned from selling goods or services.
26. Debts or financial obligations owed by a business.

1. capital Money raised by a company from selling shares.
2. Ongoing business expenses not directly linked to production, such as rent and salaries.
5. profit The profit made after deducting cost of goods sold from sales revenue.
9. employed The total long-term funds invested in a business.
11. The owner’s share of the business after liabilities are deducted from assets.
12. Items of value owned by a business.
13. The surplus left when total revenue is greater than total costs.
14. of goods sold The direct cost of producing or purchasing the goods sold by a business.
16. assets Long-term resources owned by a business, such as buildings, machinery, and vehicles.
17. Money borrowed that must be repaid, usually with interest.
19. The costs a business pays to run its operations.
23. profit Profit kept in the business after dividends have been paid.
25. overdraft A short-term borrowing facility that allows a business to withdraw more money than it has in its bank account.