What is the PAYROLL?
Payroll refers to the employees you pay, along with employee information. Payroll is also the amount you pay employees during each pay period.
What is DEBT?
Debt is an amount of money borrowed by one party from another. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest. (INTEREST)
What is interest?
Interest is defined as the amount of money paid for the use of borrowing someone else's money.
Example:
For example, say you borrow $1,000 for seven years at a 10% interest rate.
What is EQUITY?
Equity is net worth.
Assets - liability = equity
What are the two types of assets? Give an example too.
Current assets & Long term assets?
Current - Things that you can turn into cash within one year like cash in the bank, investments.
Long - Things that won't be turning into cash any time soon. House, car.
What are Liabilities?
Liabilities are what you owe. Like bills that you have to pay or a loan.
What is revenue?
All money that comes into the business and what money the business makes.
What is profit?
Profit is the money left over after you have paid your expenses such as water bills, staff to pay etc.
What is the difference between revenue and profit?
Revenue is the total amount of income generated by the sale of goods or services in the company. Profit is the amount of income that remains after accounting for all expenses, debts, additional income streams, and operating costs.
What is a credit?
Credit is when you have to pay for something but do not have enough money on your credit card. You simply go over what you pay, this put you into a deduction. You borrow money needed and get a bill with a small interest at the end of the month.
What is debt?
What is when you pay for an expense straight away. For example you would use cash.
