6622570
| Question | Answer |
| Purchase Orders | Used when a business needs to order something from another business |
| Delivery notes | completed by the business sending good, it outlines the items that have been included in the parcel/delivery |
| Good received notes | A document completed by the person unpacking the parcel/delivery |
| Purchase invoice | received by the business from a supplier requesting payment for goods the business has had on credit items |
| Sales invoice | Is sent from a business and is a request for payment for goods supplied to a customer |
| Credit note | reduces the amount owed on an invoice following refunds |
| Statement of account | summary of transactions between a business and its regular customer |
| Remittance advice | bottom section of a statement of account and can be used as reference when returning payment |
| Receipt | A document stating stock bought by the customer from the business |
| Cash | not often used for large payments, small payments use a Petty Cash system |
| Cheque | to accompany remittance advice |
| Credit card | A small plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit. |
| Debit card | A card allowing the holder to transfer money electronically from their bank account when making a purchase. |
| Direct debit | an arrangement made with a bank that allows a third party to transfer money from a person's account on agreed dates, typically in order to pay bills. |
| Income | Money earned by a individual or business |
| Expenditure | The costs that you have to pay |
| Opening balance | The opening balance is the money which the business available to spend at the beginning. |
| Closing balance | Is the inflow/outflow added to the opening balance. |
| Fixed costs | costs that do not change |
| Variable costs | costs that change depending on the level of production taking place |
| Total costs | The total amount a business has to pay |
| Break-even point | The break even point is the production level where total revenues equals total expenses. In other words, the break-even point is where a company produces the same amount of revenues as expenses either during a manufacturing process or an accounting period. |
| Break-even formula | Fixed costs divided by contribution = number of units required to break even |
| Break-even chart | A graph to show where the break even point is and the margin of safety. |
| sales | The value of the good or services being sold |
| Cost of sales | The amount you have to pay for the goods or services being sold in your business |
| Gross profit | is the amount of profit made by a business as a result of buying or selling goods or services. Formula to calculate gross profit = selling price = buying price |
| Expenses | The costs of running the business e.g electricity and wages |
| Net profit | Formula for net profit = Gross profit - costs of running the business |
Want to create your own Flashcards for free with GoConqr? Learn more.