BTEC Business Unit 2: Finance
Gross profit - answerMoney made from sales taking into accoint cost of sales
Net profit - answerThe money made overall after all expenditure is deducted
Budgetary control - answerComparing budget figures to actual figures, using adverse
and favourable variables
Retained profit - answerPart of firms profit that is reinvested into the business rather
than distributed to shareholders
Balance sheet - answerA sheet showing the assets and liabilities of a business
Fixed asset - answerItems that a business has to keep in order to trade
Current asset - answerItems that are changing with every transaction, such as stock,
money in the bank, debtors
What's the difference between current and not current liabilities? - answerCurrent
liabilities is money that needs to be paid back within a year
What are net current assets also known as? - answerWork capital
Income statement - answerStatements made showing profit or loss
Gross profit - answerMoney made from sales taking into accoint cost of sales
Net profit - answerThe money made overall after all expenditure is deducted
Budgetary control - answerComparing budget figures to actual figures, using adverse
and favourable variables
Retained profit - answerPart of firms profit that is reinvested into the business rather
than distributed to shareholders
Balance sheet - answerA sheet showing the assets and liabilities of a business
Fixed asset - answerItems that a business has to keep in order to trade
Current asset - answerItems that are changing with every transaction, such as stock,
money in the bank, debtors
What's the difference between current and not current liabilities? - answerCurrent
liabilities is money that needs to be paid back within a year
What are net current assets also known as? - answerWork capital
Income statement - answerStatements made showing profit or loss
