Business Studies


What are assets?

What the business OWNS.

A piece of property or equipment purchased exclusively or primarily for business use.

Business assets span many categories, such as vehicles, real estate, computers, office furniture and other fixtures.

Much of the start-up capital for many businesses goes toward the purchase of this type of asset.

Business Assets are listed on the firm's balance sheet as items of ownership.

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Revenue is the money coming into a business.

The main revenue will come from the sale of the firm's producs or services.

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Current liabilities

Amount of money owed to trade creditors, bank overdrafts and divident payments,.

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Debit card

Switch and Delta are the two main debit cards. Debit cards can only be used if the acound holder has enough money in the acount.

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A written instruction from the acount holder to their bank to pay the person named on the cheque a specific amount of money.

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Goods recieved Note

Signed by the person recieving the goods. It shows that the goods have been recieved.

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Delivery Note

Sent along with the goods to the perchaser, it includes details such as the quantity, type and size etc.

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Direct Debit

Where firms or individuals make regular transactions from their bank acount a direct debit can be aranged.

This makes sure they never forget because it is AUTOMATIC

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Net Profit

Total expenses subtracted from the gross profit. It is used to; PAY SHAREHOLDERS, REINVEST IN THE BUSINESS.

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Fixed assets

Include the value of land, premises, equipment, vehicles and investments.

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Current assets

The value of stock, debtors, bank and cash held within the business.

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Start up cost

Costs linked to new activities when the business is considering expansion or starting up. This includes things like; computers, tills or cabinets.

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Normally sent when the goods have been delivered to a firm.It can be sent in advance, to warn the customer the goods are on the way.

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Remitance advice slip

Sent by the purchaser to tell the seller that they have made a payment and what the payment is for.

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Planned income and expenditure for a department or a business.

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Gross Profit

Difference between sales and cost of sales (purchases)

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Both credit cards and debit cards make use of Electronic Funds Transfer at Point of Sale (EFTPOS). The system reads the information from the card and produces a slip of paper, which the card holder must sign to agree the transaction.


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Fixed cost

These costs do not change with an increase or decrease in output.

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Credit note

A credit note is issued if the customer has paid too much for the goods for some reason.

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When a seller receives a customer's payment they may send a receipt to confirm the payment.

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