a financial objective is one set by the entrepreneur involving money and will be quantitative and easy to measure.
cash flow is the money floewing in and out of a business on a day to day basis whereas a flow forecast predicts how cash will flow through a business over time.
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fixed cost+ variable cost = total cost.
profit occurs when revenues of a business are greater than its total costs.
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total revenue-total cost=profit or loss
cash flow isnt profit.A profitable business may still have a cash flow problem and go out of business.
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a business plan is a plan for the development of business, giving forecast of items such as sales,costs and cash flow
opening balance is the amount of money you start with at the start of the month
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net cash flow is the receipts of a business minus its payments either positive or negative
inflow is the money from owners,bank loans or cash from sales
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Other cards in this set
Card 2
Front
profit occurs when revenues of a business are greater than its total costs.
Back
fixed cost+ variable cost = total cost.
Card 3
Front
cash flow isnt profit.A profitable business may still have a cash flow problem and go out of business.
Back
Card 4
Front
opening balance is the amount of money you start with at the start of the month
Back
Card 5
Front
inflow is the money from owners,bank loans or cash from sales
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