Question

How familiar are you with financial terminology? Try to define these common financial terms.

Drag the definitions to the correct terms.

Options:

1. The total income your business earns from its core activities – like selling products or services – before deducting any costs.
2. The costs required to generate revenue, like salaries, rent, utilities, and supplies.
3. Also known as profit, this is what remains after all expenses are subtracted from revenue.

Targets:

1. Revenue
2. Expenses
3. Net Income

Answer

Revenue is the starting point for understanding how much money is coming into the business.  

Keeping track of and managing expenses is crucial for ensuring the business stays profitable.  

Net income shows you if your business is financially healthy or struggling. If your expenses are higher than your revenue, you have a net loss.

Correct answer(s):

Option A = Target 1
Option B = Target 2
Option C = Target 3