The money directly generated from sales is Sales Revenue/Turnover.

Prepare for the WJEC GCSE Business Studies Test with interactive quizzes and detailed explanations. Enhance your knowledge on key business concepts and boost your exam confidence.

Multiple Choice

The money directly generated from sales is Sales Revenue/Turnover.

Explanation:
The key idea is the income a business earns from its core selling activity. The money directly generated from selling goods or services is called sales revenue, also known as turnover. This is the total value of sales in a period and represents cash coming in from customers before costs are taken out. It’s different from net profit, which is what’s left after deducting expenses, and from fixed assets, which are long‑term resources owned by the business. So naming the income as sales revenue/turnover captures exactly what the business earns from its sales activity, making it the best choice.

The key idea is the income a business earns from its core selling activity. The money directly generated from selling goods or services is called sales revenue, also known as turnover. This is the total value of sales in a period and represents cash coming in from customers before costs are taken out. It’s different from net profit, which is what’s left after deducting expenses, and from fixed assets, which are long‑term resources owned by the business. So naming the income as sales revenue/turnover captures exactly what the business earns from its sales activity, making it the best choice.

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