Business Accounting Terms

Questions and Answers

What is the term for the written document that outlines the design and objectives of a business?

Business plan

What type of pricing method is based on the total cost of producing a product?

Cost-based pricing

What is the term for the point at which the total revenue equals the total cost of a business?

Break-even point

What is the term for the financial report that shows the inflows and outflows of cash in a business?

Cash flow statement Signup and view all the answers

What is the term for the advantage of obtaining a better deal or price in a business transaction?

Bargaining power Signup and view all the answers

What is the term for the business model that combines physical stores (bricks) with online sales (clicks)?

Bricks and clicks Signup and view all the answers

What is the purpose of a balance sheet?

To report the financial position of a business at a specified date Signup and view all the answers

What is the term for the cash that is maintained by a business after deducting all the expenses?

Cash balance Signup and view all the answers

What is the purpose of bookkeeping in a business?

To record the financial transactions of a business Signup and view all the answers

What is the term for the list of all the accounts used by a business?

Chart of accounts Signup and view all the answers

What is the term for the business model that focuses on a specific market segment or niche?

Concentrated marketing or niche marketing Signup and view all the answers

What is the term for the cash that goes into a business?

Cash inflow Signup and view all the answers

What is the purpose of a business report?

To provide a written report on the business Signup and view all the answers

What is the term for the process of determining the point at which the total revenue equals the total cost of a business?

Break-even analysis Signup and view all the answers

What is the term for the miscellaneous or supplementary items that are included in a business report?

Appendices Signup and view all the answers

What is the term for the expenses incurred by a business in its day-to-day operations?

Administrative expenses Signup and view all the answers

Study Notes

Business Concepts

Achievement cluster refers to a propensity or inclination.
Administrative expenses are costs associated with the upkeep of a business.
Appendices are miscellaneous or supplementary items.

Financial Reports

A balance sheet reports the financial position of a business at a specified date.
A cash flow statement is a financial report that outlines inflows and outflows of cash.

Pricing Strategies

Break-even analysis determines the point at which price equals total cost.
Break-even point is the point at which price equals total cost.
Break-even pricing is a type of pricing method where price equals total cost.
Cost-based pricing is based on the cost of making a product.

Business Models

A business model is a design that outlines how a business operates.
A bricks and clicks business model combines physical and online operations.

Financial Management

Cash balance refers to the cash maintained by a business after deducting all expenses.
Cash inflow is the cash that goes into a business.
Cash flow refers to the transfer of cash.
Cash outflow is the cash that goes out of a business.
A chart of accounts is a list of all the accounts used by a business.

Marketing Strategies

Concentrated marketing, also known as niche marketing, focuses on a single market segment or niche.