profit and cash flow MR WHITE Flashcards
1
Q
what are some profit objectives?
A
maximise, exceed margins, rate of profitablity
2
Q
what is gross profit?
A
profit - variable costs
3
Q
what is net profit?
A
profit - total costs
4
Q
what is cash flow?
A
money coming in and out the business
5
Q
what are some cash flow objectives?
A
spread cash flow for a steady income, reduce overdraft
6
Q
how is profit linked to cashflow?
A
revenues turn into inflows and costs turn to outflows
7
Q
where does cashflow differ from profit?
A
cashflow might be delayed eg credit or when goods are received.
