Small Business Terms
Revenue
Income earned from the sale of goods and or services
Purchases
Merchandise that a business buys from a wholesaler to resell at a retail price
FICA Tax
Social Security Tax
Net profit
Te difference between sales revenue and expenses when sales revenue is greater than expenses
Cost of goods sold
The amount a company paid for merchandise that was sold
Interest
The amount charged by the bank for the use of borrowed money
Net pay
The amount of money left after all deductions have been taken out of gross pay
Withholding Tax
The amount withheld from pay for federal income tax
Operating Expenses
The usual maintenance expenses of a business (such as rent, salaries, advertising, etc) other than the cost of buying merchandise for resale
Trade Discount
Two or more discounts deducted in succession from the list price
Lessor
a landlord who leases real property to a tenant
Vendor
A company, sometimes called a supplier, tat supplies a retail business with products to be resold to the public
Marketing Strategy
A plan for selling a product
Lessee
A tenant under a lease of real property
Principal
Amount of money borrowed
Gross Pay
The difference between sales revenue and cost of goods sold before operating expenses are deducted
Gross profit
The difference between sales revenue and cost of goods sold before operating expenses are duducted
Net loss
The difference between sales revenue and expenses when expenses are greater than sales revenue
Markup
The difference between the retail price and the cost price
Retail Price
The final selling price paid for gods or services by the consumer
Wholesale Price
The price a retailer pays to a vendor for merchandise (cost of goods sold)
List price
The price of goods in a supplier's catalog before any discounts are deducted
