iGCSE Business Studies revision quiz|Questions and Answers 100% Solved|
Latest Update Graded A+
Hire purchase The purchase of an asset by paying a fixed repayment amount per time
period over an agreed period. The asset is owned by the purchasing company at the end of
payment term.
Gross profit The difference between revenue and cost of sales.
Profit The difference between revenue and total costs.
Total cost Costs of sales plus expenses.
Revenue The amount earned for the sale of products.
Costs of sales The cost of purchasing the goods used to make the products sold.
Credit sales goods sold to customers who will pay for these at an agreed date in the future.
Working capital Measurement of liquidity of a business.
Net cashflow Cash inflow minus cash outflow
Current assets Resources that the business owns and expects to convert into cash before
the next balance sheet date.
Trade payable The amount a business owes to its suppliers for goods bought on credit.
, Owner's equity The amount owed by the business to its owners includes capital and
retained profits.
Shareholder's equity Owner's equity.
Gross profit margin gross profit/revenue * 100%
Profit margin profit/revenue * 100%
Return on capital employed profit/capital employed * 100%
Value add Selling products for more than it costs to produce it.
Current ratio current assets/current liabilities
Acid test ratio (current assets - inventories)/current liabilities
Current liabilities Debts of a business which it expects to pay before that date of the next
balance sheet.
Non current liabilities Debts of a business which will be payable after more than a year.
Hierarchy The number of levels in an organisational structure.
Chain of command The route through which authority is passed down through an
organisation.
Latest Update Graded A+
Hire purchase The purchase of an asset by paying a fixed repayment amount per time
period over an agreed period. The asset is owned by the purchasing company at the end of
payment term.
Gross profit The difference between revenue and cost of sales.
Profit The difference between revenue and total costs.
Total cost Costs of sales plus expenses.
Revenue The amount earned for the sale of products.
Costs of sales The cost of purchasing the goods used to make the products sold.
Credit sales goods sold to customers who will pay for these at an agreed date in the future.
Working capital Measurement of liquidity of a business.
Net cashflow Cash inflow minus cash outflow
Current assets Resources that the business owns and expects to convert into cash before
the next balance sheet date.
Trade payable The amount a business owes to its suppliers for goods bought on credit.
, Owner's equity The amount owed by the business to its owners includes capital and
retained profits.
Shareholder's equity Owner's equity.
Gross profit margin gross profit/revenue * 100%
Profit margin profit/revenue * 100%
Return on capital employed profit/capital employed * 100%
Value add Selling products for more than it costs to produce it.
Current ratio current assets/current liabilities
Acid test ratio (current assets - inventories)/current liabilities
Current liabilities Debts of a business which it expects to pay before that date of the next
balance sheet.
Non current liabilities Debts of a business which will be payable after more than a year.
Hierarchy The number of levels in an organisational structure.
Chain of command The route through which authority is passed down through an
organisation.
