An item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
1 of 24
What is an Average Rate of Return?
the average annual amount of cash flow generated over the life of an investment.
2 of 24
What is a Break Even Chart?
a chart that shows the sales volume level at which total costs equal sales.
3 of 24
What is a Break Even Output?
production level that achieves zero economic profit.
4 of 24
What is Cash Flow Forecast?
a plan that shows how much money a business expects to receive in, and pay out, over a given period of time.
5 of 24
What is Cash Inflow?
Cash inflow is the money going into a business.
6 of 24
What is Cash Outflow?
Cash outflow is the amount of cash going out of a business
7 of 24
What is Closing Balance?
A closing balance is the amount remaining in an account within your chart of accounts, positive or negative, at the end of an accounting period or year end.
8 of 24
What is Cost?
An amount that has to be paid or spent to buy or obtain something.
9 of 24
What are External Sources of Finance?
External sources of finance are those sources of finance which come from outside the business.
10 of 24
What are Fixed Costs?
Business costs, such as rent, that are constant whatever the amount of goods produced.
11 of 24
What are government grants?
A government grant is a financial award given by the federal, state, or local government authority for a beneficial project of some sort.
12 of 24
What is Gross profit margin?
Gross margin is the difference between revenue and cost of goods sold divided by revenue.
13 of 24
What is Hire Purchase?
a system by which one pays for a thing in regular instalments while having the use of it.
14 of 24
What are liabilities?
Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations.
15 of 24
What are loans?
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
16 of 24
What is Margin of safety?
is how much output or sales level can fall before a business reaches its break-even point.
17 of 24
What is mortgage?
A legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan.
18 of 24
What is net cash flow?
Is the company's cash inflows and outflows in a given period.
19 of 24
What is net profit margin?
is the percentage of revenue left after all expenses have been deducted from sales.
20 of 24
What is overdraft?
is an extension of credit from a lending institution that is granted when an account reaches zero.
21 of 24
What is raising finance?
is the process of raising capital through the sale of shares.
22 of 24
What is retained profit?
Retained profit is the profit kept in the company rather than paid out to shareholders as a dividend.
23 of 24
What is revenue?
revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers.
24 of 24
Other cards in this set
Card 2
Front
What is an Average Rate of Return?
Back
the average annual amount of cash flow generated over the life of an investment.
Comments
No comments have yet been made