A2 - Business - Using financial data to measure and assess performance 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: jkavCreated on: 06-11-15 11:16 Income statement A financial document that summarises a business's trading activity and expenses to show whether it has made a profit or a loss. 1 of 23 Gross profit Profit after cost of sales has been deducted. 2 of 23 Operating profit Profit after all other expenses have been deducted, also referred to as net profit. 3 of 23 Gross profit margin Gross profit expressed as a percentage of sales revenue. 4 of 23 Operating profit margin Operating profit expressed as a percentage of sales revenue. 5 of 23 Profit quality The sustainability of profit. 6 of 23 Profit utilisation How profit is being used, i.e. whether it is being ploughed back into the business or distributed to shareholders. 7 of 23 Balance sheet A financial document that summarises the net worth of a business - it balances total assets with total equity and liabilities. 8 of 23 Inventories The IFRS term for stocks 9 of 23 Total equity The total amount of money being utilised in the business from share capital and retained profit. 10 of 23 Non-current assets (fixed assets) Items of value owned by the business that are likely to be kept for more than one year. 11 of 23 Current assets Resources owned by the business whose value varies as a result of daily business activities, e.g. cash, inventories. 12 of 23 Intangible assets Purchased items without physical form such as goodwill and brand names. 13 of 23 Current liabilities Financial obligations of the business payable within 12 months. 14 of 23 Non-current liabilities (long-term liabilities) Debts that the business has more than one year to repay. 15 of 23 Net current liabilities Current liabilities plus current assets. 16 of 23 Net assets Total assets minus total liabilities. 17 of 23 Working capital A measure of a firm's ability to meet day-to-day expenses. 18 of 23 Depreciation An accounting practice which allows the value of a fixed asset to be spread over its useful life. 19 of 23 Trade receiveables Amounts owed by debtors to the business. 20 of 23 Debtor Someone who owes the business money, i.e. a customer who has not yet paid. 21 of 23 Trade payables Amounts owed by the business to creditors. 22 of 23 Creditor Someone the business owes money to i.e. a supplier who has not yet been paid. 23 of 23
Chapter 3: Using Financial data to Measure and Assess Financial Performance 5.0 / 5 based on 1 rating
3.7.2 Analysing the existing international position of a business to assess strengths and weaknesses: financial ratio analysis 0.0 / 5
Comments
No comments have yet been made