Unit 1- Business Studies

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What is Finance?
Money raised by a business so they can trade.
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What is Profit?
The money we have left over after weve covered all our expenses. (profit=revenue-costs)
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What is Loss?
When costs are higher than sales revenue.
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What are Costs?
The expenses a business pays for in producing goods and services.
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What is Revenue/Turnover?
The money we get from selling our product or service. (revenue=price X quantity sold)
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What is Cash?
Money that the business has avaliable so it straight away such as money in its bank account.
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What is Forecast?
A technique where a business attempts to estimate future sales, cash flow or other financial variables.
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What is a Cash Flow Forecast?
A prediction os a business' future cash inflows and outflows, showing the closing balance.
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What is Receipts (cash in)?
The money the business is paid in the month. It may come from cash sales or credit sales.
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What is Payments (cash out)?
Anything that the business spends that month such as rent.
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What is Net Cash Flow?
The difference between receipts and payments. (net cash flow=receipts-payments)
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What is Opening Balance?
The money the business has at the start of the month.
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What is Closing Balance?
The money the company has at the end of the month. (closing balance=net cash flow+opening balance)
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Other cards in this set

Card 2

Front

The money we have left over after weve covered all our expenses. (profit=revenue-costs)

Back

What is Profit?

Card 3

Front

When costs are higher than sales revenue.

Back

Preview of the back of card 3

Card 4

Front

The expenses a business pays for in producing goods and services.

Back

Preview of the back of card 4

Card 5

Front

The money we get from selling our product or service. (revenue=price X quantity sold)

Back

Preview of the back of card 5
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