5330212
Description
Flashcards by Joshua Smith, updated more than 1 year ago
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Created by Joshua Smith
over 9 years ago
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| Question | Answer |
| Start Up Capital | The money raised to start the business |
| Working Capital | The finance available day-to-day to run the business |
| Asset | Things the business owns |
| Cash Flow Forecast | A prediction of cash inflows and outflows over a future period of time |
| Cash Flow Statement | A document of cash inflows and outflows that have happened |
| Cash Flow Problem | When a business does not have enough cash to be able to pay its liabilities |
| Extrapolation | Uses trends established from historical data to forecast the future |
| Independent Variable | The factor that causes the dependent variable to change |
| Dependent Variable | The variable that is influenced by the indpendent variable |
| Demand | The amount of a product that customers are prepared to buy |
| Revenues | The amount of a product that customers actually buy from a firm |
| Costs | Amounts that a business incurs in order to make goods and/or provide services |
| Variable Costs | Costs that change as output varies |
| Fixed Costs | Costs that do not chnage as output varies |
| Profit | The reward or return for taking risks and making investments |
| Contribution | The difference between sales and variable costs to look at the profit made on individual products |
| Margin of Safety | The difference between actual output and breakeven output |
| Corporation Tax | Tax paid to the government on prfits made by the business |
| Ratio Analysis | Analysing relationships between financial data to asses the performance of a business |
| Gross Profit | The difference between revenue and cost of sales |
| Operating Profit | Records how mcuh profit has been made in total from the trading activities of the business before account is taken of how business is financed |
| Taxation | An estimate of how much corporation tax that is likely to be payable on the profits for the period |
| Profit for the Year | The amount of profit that is left after the tax has been accounted for |
| Administration Expenses | Operating costs and expenses that are not directly related to producing the goods or services are recorded here |
| Liabilities | How much money has been borrowed or invested and where this money has come from |
| Fixed Assets | Asstes that the business actually owns and which are therfore "fixed" into the company |
| Current Assets | Assets the business hold temporarily or that are always changing |
| Current Liabilities | Short term borrowings or investment and always changing |
| Share Capital | Money which shareholders have invested in the business |
| Liquidity Ratios | Asses whether a business has sufficient cash or equivalent current assets to be able to pay its debts as they fall due |
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