7360810
Description
Flashcards by Sasha Bailey, updated more than 1 year ago
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Created by Sasha Bailey
almost 9 years ago
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| Question | Answer |
| Assets | Something that is owned by a business. |
| Auditor | Someone who is qualified to examine a business's accounts and make sure they properly reflect the business's financial situation. |
| Authorised capital | The total amount of money that a company is allowed to raise through issuing shares. |
| Average cost | The unit cost of producing an item. Calculation - total cost/number of times produced. |
| Break even | When a business sells enough items that its revenue is equal to its cost so its profit is zero. |
| Cash Inflow | Money coming into the business. |
| Cash Outflow | Money spent by a business. |
| A cash flow forecast | A document that estimates future inflows and outflows and allows you to predict future bank balances. |
| Cooperation Tax | A tax paid as a percentage of the profits of a limited company. |
| creditors | Individuals, people or governments that a business owes money to. |
| debtors | People and other businesses that owe a business money. |
| Income Tax | A tax paid on the money that you earn. |
| What is insolvency | When a business can no longer pay its bills. |
| liabilities | The debts of a business. |
| Examples of short term finance | Trade credit, overdraft. |
| Calculation for net cash flow. | Inflows-outflows=net cash flow. |
| Overdraft | An agreement with the bank that allows you to spend more money than you have put into it. |
| Give one example of an outflow? | Rent, wages, insurance, stock, salaries, manufacturing. |
| Give one example of a long term source of finance? | loans, mortgages, share capital. |
| Which of these is an example of short term finance...mortgage, overdraft, share capital? | Overdraft |
| What is used to show the money flowing in and out of a business over a year? | Cash flow Forecast |
| What is a cash flow forecast? | A document that predicts the inflows and outflows over a given period of time. |
| What does a profit and loss account show? | Net Profit |
| What is an external source of finance? Give an example. | Finance provided by people or institutions outside the business which will require payment. - loans, overdrafts, shares, debentures. |
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