Business finance sheet1
- Created by: Lukejerram
- Created on: 05-02-17 18:26
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- Fianance
- business costs
- running costs
- Business has to pay these on a regular basis.
- split into two types: variable costs and fixed costs
- fixed costs does not change depending on output
- variable costs change depending on output
- start-up costs
- What a business has to invest in to start up the buisness
- The total cost is the amount of money spent by a firm on producing a given level of output. Total costs are made up of fixed costs (FC) and variable costs (VC).
- running costs
- Revenue
- money a business receives
- main ways of getting revenue are selling products or services
- Revenue is sometimes called sales, sales revenue, total revenue or turnover.
- profit/loss
- profit is the money a business has left
- If a business spends more money than it receives it means its making a loss
- Breaking even
- The break-even point is when the ammount of money spent on making the product is the same as the money made from selling the product
- accounts
- a bank statement shows what a business is worth presently
- This also shows the current assets
- a curremt asset is something a business owns for under 12 months and can be easily turned into cash
- This will also show fixed assets
- A fixed assest is something a business will own for more than 12 months.
- the bank statement also shows current liablilities
- A liability is something a business owes to another business or person
- This also shows the current assets
- a cashflow forecsdt shows what money is coming in and out of a business.
- a profit and loss acdount shows the profit and loss a business makes.
- a bank statement shows what a business is worth presently
- business costs
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