Vocabulary #1
Another name for accounting.
What is record keeping?
Rental fees go here.
What is expenses?
Gross Profit
What is sales - COGS= gross profit
Original Investment
What is your own money that was used to start the company
Cash Flow
What is amount of money going into and out of a business during regular business operations
The bottom line
What is profit?
Balance Sheet
What is scorecard
Money left after you subtract the COGS from your sales
What is earnings
Money brought in by doing business
What is sales
Indirect Competitor
The part of the business owned by the owners
What is owners equity
Top right side
What is liabilites?
Rule #2
What is assets - liabilites = owners equity
Finished Goods
What is goods ready for sale
Consumer Profile
What is identifying a target market segments helps find very specific information about a group of potential customers
Goods not yet ready for sale.
What is goods in progress
Left side.
What is money
Rule #1
What is the left side always equals the right side.
COGS
What is the total amount of everything used
The money put into buildings,tools, and machines to create goods and services
What is Capital
Another name for an IOU
What is note payable.
Lower left side.
What is equity
Unit Cost
What is cost of goods divided by number sold
Assets
What is what we have
Break- Even Point
What is when a business's expenses and sales equal zero because the business has sold exactly enough units to cover its fixed expenses