The specific, focussed aims or goals of the finance and accounting function or department within an organisation.
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Cash Flow
The amount of money flowing into and out of the business over a period of time.
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Depreciation
The fall in value of an asset overtime, reflecting the wear and tear of the asset as it becomes older, the reduction in its economic use or its obsolescence.
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Obsolescence
When an asset is still functioning but its no longer considered useful because its out of date.
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Budget
An agreed plan establishing, in numerical or finanical terms, the policy to be persued and the anticipated outcomes of that policy.
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Variance analysis
The process by which the outcomes of budgets are examined and then compared with the budgeted figures.
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Favourable variance
When costs are lower than expected or revenue is higher than expected.
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Adverse variance
When costs are higher than expected or revenue is lower than expected.
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Cash inflow
Receipts of cash, typically arising from sales of items, paymentsby debtors, loans recieved, rent charged, sales of assets and interest recieved.
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Cash outflow
Payments of cash, typically arising from the purchase of items.
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Net cash flow
The sum of cash inflows to an organisation minus the sum of cash outflows over a period of time.
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Cash flow forecasting
The process of estimating the expected cash inflows and cash outflows over a period of time.
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Receivables
People who owe the business money, usually customers who have been given credit terms.
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Payables
People who are owed money by the business, usually these are suppliers awaiting payment.
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Break-even output
The level of output at which total sales revenue is equal to total cost of production.
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Factoring
When a factoring company (usually a bank) buys the right to collect the money from the credit sales of a business.
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Bank overdraft
When a bank allows an individual or organisation to overspend its current account in the bank upto an agreed limit and for a stated period of time.
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Ordinary share capital
Money given to the company by shareholders in return for a share certificate that gives them part ownership of the company and entitles them to a share of the profits.
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Loan capital
Money recieved by an organisation in return for the organisation's agreement to pay interest during the period of the loan and to repay the loan within an agreed time.
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Venture capital
Finance that is provided to a small or medium sized firms that seek growth, but which may be considered as risky by typical share buyers.
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Other cards in this set
Card 2
Front
The amount of money flowing into and out of the business over a period of time.
Back
Cash Flow
Card 3
Front
The fall in value of an asset overtime, reflecting the wear and tear of the asset as it becomes older, the reduction in its economic use or its obsolescence.
Back
Card 4
Front
When an asset is still functioning but its no longer considered useful because its out of date.
Back
Card 5
Front
An agreed plan establishing, in numerical or finanical terms, the policy to be persued and the anticipated outcomes of that policy.
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