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Definition
| document that shows a business owner their profit and loss over a year |
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| the expenses incurred in operating a busines including payroll, rent, and supplies. |
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| The amount of money the business made before taxes. |
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| For service industry is Revenue-expenses= net income For production and sale of goods is Gross Profit-Expenses=Net profit/income |
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| Merchandise purchased for resale |
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| the expense of the inventory you sold in a given time period. |
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| Cost of goods sold equation |
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| beginning inventory+purchased inventory=total inventory - ending inventory= cost of goods sold. |
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| The total profit before taking out expenses. |
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| the total return from any products or services sold before weighing expenses |
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| Revenues-Cost of Goods Sold= Gross Profit |
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| those connected with the running of the business |
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| the amount of goods or services sold when the business revenues equals its expenses. |
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| Break-even point equation |
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| Total production cost Divided by selling price= break-even point |
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Definition
| principal($)xrate(%)xtime(yrs)=interest or i=prt |
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| the amount of money borrowed or invested |
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| the frequency with which the inventory has been sold and replaced over a particular period of time |
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| Stock Turnover rate equation |
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Definition
| total net sales divided by average inventory on hand=stock turnover rate. |
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Definition
| the tax paid by a buyer which is turned over to the state or federal government by the seller. |
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Definition
| Purchase total($)x tax rate(%)=sales tax |
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Definition
| the amount added to the cost of an item to cover expenses and ensure a profit for the business |
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| The final selling price equaling the cost for the product plus its markup. |
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| a reduction in the retail or wholesale price of a particular product. |
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Definition
| retail price($) x discount(%)= $discount |
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Term
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Definition
| the amount of cash should match the receipt for total sales every day. |
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