Types of Businesses
These businesses produce raw goods
What is a Producer?
Recording, reporting, and analyzing financial transactions
What is Accounting?
Assets =
What is Liabilities + Owner's Equity?
Shows any losses which have occurred in the numerical balances of the company
What is a Profit Loss Statement?
This type of business does not operate on profit (Salvation Army)
What is a Non-Profit Organization?
The amount of money a business receives over time
What is Revenue?
Revenue - Expenses =
What is Net Income?
Total money received in a quarter
What is Total Revenue?
Provides services rather than goods to customers
What is a Service Firm?
The two types of Revenue
What is Operating and Non-Operating Revenue?
Gross Profit =
What is Sales - Cost of Goods Sold?
Money made after paying for goods
What is Gross Profit?
Change raw or processed goods into finished goods
What is a Manufacturer?
What are Assets?
(Purchase Price - Salvage Value)/Life Expectancy =
What is Depreciation?
Total money spent on goods
What is Cost of Goods Sold?
The other name for an Intermediary
What is the Middleman?
The obligations of one company to another
What are Liabilities?
Profit Margin
What is Net Income + Sales?
Profit made in the quarter (gross profit - expenses)
What is Net Profit?