Business unit 1 booklet 3 0.0 / 5 ? Business StudiesFinanceGCSEAQA Created by: ChloeedannielleCreated on: 01-05-15 18:29 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
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