Profit and loss (Edexcel GCSE Business): Flashcards
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Practise the cards
12 cards from this deck
Definition of profit
Definition of profit
When revenue exceeds costs
Definition of loss
Definition of loss
When costs exceed revenue
Formula for profit
Formula for profit
Sales Revenue - Total Costs
Two types of profit mentioned
Two types of profit mentioned
Gross profit and net profit
How profit helps survival & growth
How profit helps survival & growth
Funds for equipment, staff, new products
Why profit provides financial security
Why profit provides financial security
Builds savings for unexpected expenses/downturns
Definition of interest
Definition of interest
Cost of borrowing money (as a %)
Interest rate formula
Interest rate formula
(Total Repaid - Borrowed) / Borrowed × 100
Two ways to increase profit
Two ways to increase profit
Increase revenue or decrease costs
Methods to reduce costs
Methods to reduce costs
Cheaper suppliers, less expensive premises, improve efficiency
How is interest expressed
How is interest expressed
As a percentage
What businesses need for long-term survival
What businesses need for long-term survival
Profit - cannot survive if spending exceeds earnings