Basic Accounting Terms

Costs
Costs are the money that a company spends.
A company should try to keep their cost low.
Sales
Sales are the money that a company makes from its products.
When a company sells its products, it increases its sales.
Profit
When sales are higher than costs, there is profit.
The company made a large profit.
Loss
When sales are lower than costs, there is a loss.
When a company has a loss, it may lower its costs.

Exercises beyond the original
Our costs were too high, so we made a loss this year.

Listen and Repeat
If sales are high, a company earns more money.