Profit
Money a business earns after all expensed deducted
Statement of comprehensive income
shows income and expenses of a business during a financial year
Cash
needed to run the business on a day to day basis
Liquidity
ability to meet short term finances using assets (cash)
Working capital
capital used in day to day trading operations
Statement of financial position
identified business’ assess and liability’s to see if they able to pay bills over the next year
Fixed assets
assets business kept for more than a year (machinery)
Current asserts
assets a business expects to keep for less than a year (raw mat)
Liabilities
what a business owes
Long term liabilities- paid back over a year
Short term- paid back in less than a year
Total equity
value of a buisness assets after contains liabilities
Current ratio
how many times short term debts can be paid out of current assts
Acid ratio test
how many times short term debts can be paid out of current assets minus stock
(More realstic than current ratio)
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2.1.1 Internal finance6
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2.1.2 External finance9
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2.1.3 Liability9
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2.1.4 Planning11
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2.2 formulas9
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2.2.1 Sales forecasting19
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2.2.2 Sales, revenue and cost8
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2.2.3 Break even15
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2.2.4 Budgets14
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2.3.1 Profit27
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2.3.2 Liquidity25
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2.3.3 Business Failure10
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2.4.1 Production, productivity and efficiency28
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2.4.2 Capacity utilisation18
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2.4.3 Stock control14
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2.4.4 Quality management16
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2.5.1 Economic influences40
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2.5.2 Legislation19
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2.5.3 Competitive environment13
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2.1+ 2.2 KEY TERMS26
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2.3 KEY TERMS12
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2.4 KEY TERMS34
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2.5 KEY TERMS30
