Define the term 'revenue' in the context of Claudio's souvenir business.

Revenue is the total amount of money Claudio earns from selling his plates to tourists.

Claudio buys plates for €1 each and sells them for €5 each. If he sells 50 plates, what are his expenses and what is his profit?

His expenses are €50 and his profit is €200.

The amount of money left over after expenses are subtracted from revenue.

I can define basic business terms like revenue, expenses, and profit.

1
Accounting makes it possible to systematically record, analyze, and report important financial information, communicating the financial health of a business to all interested parties.
2
The income statement shows a business's profitability, while the balance sheet shows the company's assets, liabilities, and equity.
3
The accounting equation states that total assets equals total liabilities plus equity.