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Business Btec Unit 3 - Business Finance Exam Latest Update
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Business Btec Unit 3 - Business Finance ExamLatest Update
Savings - Answer putting money in a safe place so that it appreciates in value and can
be utilised in the future
Investment - An answer that has been speculated to commit a venture into business in
anticipation that it will yield a financial benefit in the future.
Expenditure - Response the total money required to meet all your expenses/ outgoings
e.g your mortgage and bills
Shareholders - A person who invested in a company in return for equality, i.e. share of
the business
(HMRC) Her Majesty's Revenue and Customs - Is a non-ministerial department of the UK
government responsible for the collection of tax
Fraud - Is a criminal deception intended to result in financial or personal gain
Profit - A financial gain, the difference between the amount earned and the amount
spent
Loss - Answer The amount of money lost in a business or organisation
Gross profit - Answer A company's total revenue minus the total revenue.
Sales Revenue - Answer Is the income from sales from goods and services, minus the
, cost associated with things returned and undelivered merchandise.
Net profit - Answer Is the actual profit after the working expenses not included in the
calculation of gross profit have been paid
Accounts Payable - Solution The amount which the company is invoiced by the suppliers
who have delivered the goods.
Accounts Receivable - Solution Amounts invoiced to customers by a business for goods
or services it has delivered.
Capital income - Informs the money invested by the owners or other investors, used to
set up a business or buy additional equipment. It tends to be used to purchase things
that will stay in the business for the medium-to-long period of time.
Fixed assets - GLOSSARY Items of value owned by a business that are really likely to
remain in business for more than one year. For example machinery. Also known as
non-current assets.
One of the incomes a business produces in return is Revenue income, which flows in
due to the selling of goods or offering a service while performing its day-to-day function.
Revenue income is related to activities the business undertakes that generate money.
Expenditure - Solution Money spent by the Business
Capital expenditure - Solution Buying of assets
Items last for more than one year
Revenue expenditure - Is spending day by day or regular basis.
These are the expenses incurred by a business
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