joes exam finance

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what is expenditure?
all the businesses costs
1 of 30
what are over heads?
everyday running costs.
2 of 30
what is the formual for total costs?
fixed costs + variable costs = total costs
3 of 30
what is break even ?
compares a firm total revenue with its total costs to indify the minimum sales level needed to make a profit.
4 of 30
what is the breakeven point?
number of sales where toal revenue and total costs are the same number
5 of 30
name some problems of breakeven
mistakes could be made with calcualtions, it is only prediction
6 of 30
cash inflow is....
the amount of money entering a businesses bank account.
7 of 30
cash out flow
the amount of money leaving a businesses bank account.
8 of 30
net cash flow
the differences between the cash inflow and outflow.
9 of 30
what is the formula for net cashflow?
inflows-outflows
10 of 30
cash balance
what a busienss has at start of a month.
11 of 30
cash flow forecast is....
prediction of the movement of cash into and out of a business over a period of time.
12 of 30
name some purposes of cashflow forecast
to plan ahead for any potential problems and fix them.
13 of 30
what is a budget?
amount of money a business owner has to start its business.
14 of 30
why do they set budgets?
try to control their finances carefully and also help the business to achieve its aims and objectives.
15 of 30
name some benfits of budgatary control ?
budget set for next period,clear targets to work towards,budgets can be monitored,help to reduce waste
16 of 30
what is variances?
the difference between the actuall figure that happens and the budgeted figures.
17 of 30
what is variances anaylasis?
investigating why variances have occured and anaylsing their impact on the business.
18 of 30
causes of variances?
unxpected outflows,increased advertising,special offers,market trends,incorrect calculations, changes to taxations.
19 of 30
fixed assests
items the business owns for more than a year
20 of 30
current assests
items the business own for less than a year
21 of 30
current liabilities
debts that will be repaid whitin a year
22 of 30
long term liabilities
debts that the business has a long term to pay back
23 of 30
debtors
customers who still owe the business money
24 of 30
creditors
suppliers the buisness owns money to
25 of 30
work capital
the cash business has available to run it self day to day.
26 of 30
share holders funds
capital employed
27 of 30
retained profit
profit carried over a form the previous year.
28 of 30
name some internal sources of finance
sales of assests, retaind profit,owners capital
29 of 30
name some external sources of finance
mortgage,overdraft,bank loans,government grant, trade credit.
30 of 30

Other cards in this set

Card 2

Front

what are over heads?

Back

everyday running costs.

Card 3

Front

what is the formual for total costs?

Back

Preview of the front of card 3

Card 4

Front

what is break even ?

Back

Preview of the front of card 4

Card 5

Front

what is the breakeven point?

Back

Preview of the front of card 5
View more cards

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