4 - Financial Information Flashcards
Be able to use financial information to check the financial health of businesses
Revenue formula?
Units Sold x Sales Price
Define cash flow statement.
A cash flow statement is a record of actual cash inflows and outflows.
How to calculate break-even??
Break-even output = fixed costs/(selling price – variable cost)
What is cash outflow?
Money going out of the business.
What is a statement of financial position?
A summary of financial balances of an organisation.
Give an example of cash outflow.
Rent, Taxes and resources
Give an example of cash inflow.
Revenue, profit and inventories.
What is the calculation for profit?
revenue-costs
How do you calculate break even?
Break-even output = fixed costs/(selling price – variable cost)
What is an income statement?
A financial document generated monthly and/or annually that reports the earnings of a company by stating all relevant revenues (or gross income) and expenses in order to calculate net income.
What is profit?
A financial gain
What is break-even?????
Reached a point in a business venture when the profits are equal to the costs.
What is break-even output???
Breakeven output is a production level that achieves zero economic profit. The total revenue received by a firm at the breakeven output just matches the total cost incurred.
What items can appear on an income statement???
sales revenue, gross profit, tax expense, general expense
Profit formula?
Revenue - Total Costs
