Edexcel A Level Business - Theme 2.3 Questions with Complete Answers| A+

Statement of comprehensive income (profit & loss account) - A financial document showing a company's income and expenditure over a particular time period, usually one year Revenue or turnover - The total income of a business resulting from sales of goods or services Gross profit - The difference between revenue/turnover and cost of sales Gross profit margin - Gross profit expressed as a percentage of revenue. Formula = (gross profit / revenue) x 100 Operating profit - The difference between gross profit and business overheads, such as selling and administrative expences Operating profit margin - Operating profit expressed a percentage of revenue/turnover. Formula = (operating profit / revenue) x 100 Profit for the year / net profit - Operating profit minus tax and interest Profit for the year margin / net profit margin - Net profit after tax, expressed as a percentage of revenue/turnover. Formula = (net profit / revenue) x 100 Statement of financial position (balance sheet) - A summary at a particular point in time of the value of a firm's assets, liabilities and capital Assets - Resources that belong to a business Current assets - Liquid assets ie those assets that will be converted into cash within one year