Finance Definitions 0.0 / 5 ? BusinessFinanceA2/A-levelAQA Created by: CharlotteCreated on: 03-12-13 12:25 Goals of the financial and accounting department of the business Financial Objectives 1 of 39 A financial objective focused on maintaining a healthy cash balance Cash Flow Targets 2 of 39 The financial rewards to a shareholder in return for their investment Shareholder Returns 3 of 39 The maximum % return a business strives to achieve from the capital employed in business activities ROCE Target 4 of 39 Looking at all costs for areas where savings can be made without affecting customer satisfaction Cost Minimisation 5 of 39 A financial document that summarises the net worth of a business Balance Sheet 6 of 39 A financial document that summarises a business' trading activitity and expenses to show whether is has made a profit or a loss Income Statement 7 of 39 A measure of a firm's ability to meet day-to-day expenses Working Capital 8 of 39 Profit after cost of sales has been deducted Gross Profit 9 of 39 Profit after all other expenses have been deducted Operating Profit 10 of 39 How profit is being used Profit Utilisation 11 of 39 The sustainability of profit Profit Quality 12 of 39 The total amount of money being utilised in the business from share capital and retained profit Total Equity 13 of 39 Items of value owned by the business that are likely to be kept for more than a year Non-Current Assets 14 of 39 Resources owned by the business whose value varies as a result of daily basis activities Current Assets 15 of 39 Financial obligations of the business payable within 12 months Current Liabilities 16 of 39 Debts that the business has more than one year to repay Non-Current Liabilities 17 of 39 An accounting practice which allows the value of a fixed asset to be spread over its useful life Depreciation 18 of 39 A business' ability to meet short-term cash payments on time Liquidity 19 of 39 A measure of the ability of abusiness to meet short-term debts Current ratio 20 of 39 A measure of the ability of the byusiness to meet short-term debts from liquid assets Acid Test 21 of 39 The relationship between a business' profits and sales revenue Profitability 22 of 39 A measure of how efficiently a business is using its capital to generate profits ROCE 23 of 39 Payment received by shareholders by the business Dividend 24 of 39 Someone who invests into a business' activities Shareholder 25 of 39 A measure of how effectively a business is using its assets to generate sales Asset Turnover 26 of 39 A measure of how many times per year a business turns over its stock through sales Inventory Turnover 27 of 39 A measure of the average number of days taken to pay suppliers Payables Days 28 of 39 A measure of the average number of days taken by a business to collect its debts from customers Receivables Days 29 of 39 The % of capital employed that comes from non-current liabilities Gearing Ratio 30 of 39 The number of pence per share received per shareholder Dividend Per Share 31 of 39 A measure of the return received on an investment, expressed as a % of the current market price of the share Dividend Yield 32 of 39 The long-term financial plan of action to achieve the financial objectives of the business Financial Strategies 33 of 39 A section of a business which costs and revenue, and therefore profit, can be identified Profit Centres 34 of 39 The purchase of assets that will remain in the business in the medium to long-term, accounted for in the balance sheet Capital Expenditure 35 of 39 The process of analysing the financial merits of possible future investment Investment Appraisal 36 of 39 The calculation of how long it will take to recoup the cost of an initial investment Payback Period 37 of 39 Average annual profit expressed as a % of initial investment Average Rate of Return (ARR) 38 of 39 The total net return of an investment stated in today's monetary value Net Present Value (NPV) 39 of 39
Mission Statement, Corporate Aims & Objectives and Strategy, Porter, Ansoff, SWOT 4.0 / 5 based on 3 ratings
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