| A | B |
|---|
| profit | when revenue is greater than expenses |
| sales | turnover |
| gross profit | the difference between the total sales and the cost of goods sold |
| mark up | the amount added to the cost price of a good to get the selling price |
| purchases | goods bought by the business intended for resale |
| customs duty | the extra amount charged to a business when goods are imported into the country |
| distribution expenses | expenses such as depreciation on shop fittings, advertising, sales wages, delivery costs that are directly related to the selling of the goods or getting the goods to the customer |
| interest paid | an amount charged to the business as a finance cost for borrowing money for a loan or mortgage |
| depreciation | the expense a business records for the loss in value of an asset such as equipment over time |
| income statement | this statement calculates the surplus or loss by subtracting expenses from revenue |
| fees | the revenue earned by a service entity such as plumbing fees or tour fees |
| dividends received | revenue earned from owning shares in a company |
| inventory on hand | the goods a trading business does not sell in the year and is recorded as a current asset |
| gross profit % | gross profit of a business divided by its total sales and multiplied by 100 |
| mark up % | the gross profit divided by the cost of goods sold times by 100 |
| improve gross profit | decrease markup, purchase goods from a cheaper supplier |
| administrative expenses | expenses that are to do with running the business such as insurance, telephone, depreciation on buildings, rates |
| other income | revenue earned that is not the main source of revenue such as interest, commission received |
| profit percentage | the return to the owner for each dollar of sales revenue earned |
| return on investment | the return to the owner for each dollar of capital invested |
