Financial Management

3.1 Financial Management

Recognize Cost Price, Selling Price, Profit and Loss

Words Meaning
Cost price The price of goods acquired before being sold to others.
Selling price The price of an item that must be paid by the buyer.
Profit The money earned from selling something after deducting the cost price.
Loss Reduced value of money because the cost price is higher than the selling price.

Recognize Discount, Rebate and Voucher

Words Meaning
Discount A price or value that is reduced from the original price or value.
Rebate Deduction from the amount of payment due or return of part of the money after making the payment.
Voucher A small piece of paper that entitles its owner to a discount or can be exchanged for other goods.

Recognize Invoices, Bills, Receipts and Service Tax

Words Meaning
Invoice List of goods or services and their prices sent by the supplier to the customer.
Bill Evidence of the price of goods or services received.
Receipt An official statement showing that payment has been received.
Service tax Tax payable on services provided by certain businesses such as restaurants.

Recognize Interest and Dividends

Words Meaning
Interest An amount of money received when an individual saves money in a bank for a certain period of time.
Dividend Shared profits for the money invested in business or shares.