Business unit 1 booklet 3

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Finance
Money raised by the business so that they can trade
1 of 17
Profit
What is left after costs have been deducted
2 of 17
Profit equation
Profit = sales revenue - total costs
3 of 17
Loss
When revenue is less than costs
4 of 17
Costs
The expenses a business pays for in producing good and services
5 of 17
Revenue
The amount of money a business receives from selling goods or services. This is sometimes called turnover.
6 of 17
Revenue calculation
Price x Quantity sold
7 of 17
Cash
Money that the business has available to it straight away, such as money in a bank account
8 of 17
Forecast
A technique where the business attempts to estimate future sales, cash flow or other financial variables
9 of 17
Cash flow forecast
A prediction of a businesses future cash in flows and outflows, showing the closing balance.
10 of 17
Receipts
The money the business is paid in the month
11 of 17
Payments
Anything the business spends in the month
12 of 17
Net cash flow
The difference between receipts and payments
13 of 17
Net cash flow equation
Receipts - payments
14 of 17
Opening balance
The money the business has at the start of the month
15 of 17
Closing balance
The money the business has at the end of the month
16 of 17
Closing balance equation
Net cash flow + opening balance
17 of 17

Other cards in this set

Card 2

Front

What is left after costs have been deducted

Back

Profit

Card 3

Front

Profit = sales revenue - total costs

Back

Preview of the back of card 3

Card 4

Front

When revenue is less than costs

Back

Preview of the back of card 4

Card 5

Front

The expenses a business pays for in producing good and services

Back

Preview of the back of card 5
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