Business Finance Revision Mindmap

Business Finance Revision Mindmap

1. Budgets

   • Budgetting
   • Budgetary Control

2. Breakeven

   • Formula = FC / (SP-VC)
   • Breakeven is the point where the business makes no profit and no loss
   • Margin of Safety
   • Benefits of Breakeven
   • Limitations of breakeven

3. Profit and Loss

   • Sometimes called an Income Statement
     • Trading Account
       • Calculated Gross Profit by taking Costs of sales from turnover
         • Then take the operating costs to leave net profit

4. Balance sheets

   • Sometimes called an Statement of Financial Position
     • This is a snapshot of a businesses situation on a particular day.
       • Assets
         • Fixed Assets
           • Long term assets that the business must have to trade
         • Current Assets
           • Assets that are quickly changing. Cash, Stock, Debtors
       • Liabilities
         • Long-term Liabilities
           • Debts to be paid over a long time
         • Current Liabilities
           • Money to be paid back within a year

5. Costs and Revenues

   • Start Up costs
   • Operating or running costs
   • Fixed Costs FC
   • Variable Costs VC
   • Semi Variable Costs SVC
   • Total Costs TC
   • Revenue TR
   • Profit
     • Gross Profit
     • Net Profit

6. Cash Flow

   • Cash Flow Forecasting
   • Cash Flow Statement
   • Cash Inflows
   • Cash Outflows
   • Net Cash Flow

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