Business Key Terms 0.0 / 5 ? Business StudiesBusiness Studies Unit 1A2/A-levelOCR Created by: Phoebewelsh27Created on: 15-05-18 19:48 Revenue The money earned from selling, based on the level of output and selling price per unit 1 of 21 Net Cash Flow The difference between money coming in and out of a business 2 of 21 Profit The surplus left over from revenue after paying total costs 3 of 21 Cash Flow The movement of money into and out of the business 4 of 21 Loss The deficit of revenue after paying total costs 5 of 21 Insolvent When a business is unable to pay its debts 6 of 21 Opportunity Cost A benefit, profit or other advantage that must be given up to acquire or achieve something else 7 of 21 Costs The expenses a business incurs when producing and supplying products and services to customers 8 of 21 Depreciation The cost of an asset consumed over its useful life due the wear and tear 9 of 21 Break even The point at which the level of sales allows total costs to equal the revenue, at the break even point a business makes no profit or loss 10 of 21 Margin of Safety The amount a business sells in excess of its break-even point 11 of 21 Cost of sales The total amount a business has paid to create a product or service that has been sold 12 of 21 Assets Resources that the business owns 13 of 21 Cash Flow Forecast An accounting report that outlines predicted future inflows and outflows of cash per month over a given time 14 of 21 Cash Flow Statement Records the actual inflows and outflows of cash per month over a given time 15 of 21 Income (profit and loss) Statement Shows the revenue and expenses for a business over a period of time, also shows the profit the business has made 16 of 21 Statement of Financial Position (Balance Sheet) A snapshot of the businesses financial health at a particular time, total assets must equal the total liabilities and owners equity 17 of 21 Equity How much a business is worth 18 of 21 Current Liabilities Debts due within 12 months 19 of 21 Long-Term Liabilities Debts that will last longer than 12 months 20 of 21 Liabilities Debts owed by an organisation 21 of 21
Comments
No comments have yet been made