HideShow resource information
Start-up Costs
The amount of money spend before it starts trading
1 of 35
Operating Costs
Money spent on a regular basis to keep a business running
2 of 35
Money which paid into a business
3 of 35
Fixed Cost
Expenditure on items which does not change with the numbers of items sold or produced
4 of 35
Variable Cost
Costs which vary according to the items sold or produced
5 of 35
Total Cost
The total amount of money spent running a business over a certain period of time
6 of 35
Money that a business spends
7 of 35
The everyday running cost of the business
8 of 35
Occurs when revenue is more than expenditure
9 of 35
Occurs when expenditure is more than revenue
10 of 35
Planning future expenditure and revenue targets with the aim of ensuring a profit is made
11 of 35
Budgeting Control
The process of checking what is actually happening, comparing this with the plan and taking action if thing aren't correct
12 of 35
Cash Inflow
The amounts of money entering a business's bank account
13 of 35
Cash Outflow
The amounts of money leaving a business's bank account
14 of 35
Net Cash Flow
The difference between the cash inflow and outflow over a particular time period
15 of 35
Cash Balance
The amount of money forecast to be in the bank account after the net cash flow forecast has been added or subtracted from the existing bank balance
16 of 35
This occurs if a business pays more out of its bank account than it has in credit. The bank may allow this but will make an extra charge
17 of 35
Money spent by the business on items which should last a long time
18 of 35
Cost Of Sales
The cost of producing a product
19 of 35
Gross Profit
The money made from selling a product after the cost of producing that product has been deducted
20 of 35
Net Profit
The money made from selling a product after all costs have been deducted from the gross profit
21 of 35
Financial Year
The trading period over which is a business collects information for their annual income statement
22 of 35
Items that a business buys that normally lasts a long time, such as a van or a computer, or money that is owed
23 of 35
People who owe money to a business for goods or services they have recieved
24 of 35
Amounts of money which a business owes
25 of 35
Share Capital
The amount of money invested in the business by their shareholders
26 of 35
Working Capital
Money the business can raise quickly which is calculated by deducting the current liability
27 of 35
Money that has been saved from previous profitable years
28 of 35
Revenue (income)
Money earned by a business from selling goods or providing services
29 of 35
The point where income and expenditure are equal
30 of 35
Margin Of Safety
The amount by which sales would have to fall to reach the break-even point
31 of 35
Cash Forecast
A plan showing predicted inflows and outflows of cash for a business
32 of 35
Income Statement
A document that shows the revenue and expenses for a year and is used to calculate profit
33 of 35
Balance Sheet
A document that shows what a business is worth
34 of 35
Net Assets
The total assets minus liabilities for a business. This is what the business is worth
35 of 35

Other cards in this set

Card 2


Operating Costs


Money spent on a regular basis to keep a business running

Card 3




Preview of the front of card 3

Card 4


Fixed Cost


Preview of the front of card 4

Card 5


Variable Cost


Preview of the front of card 5
View more cards


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Finance resources »