business- finance

Question 1

Average Rate of Return (ARR)

Answer 1

a method of measuring and comparing profitability of an investment over the life of it

Question 2

Break- Even Forecast

Answer 2

prediction of when you will break even based on estimates of future sales and revenue

Question 3

Break-Even Quantity

Answer 3

amount a business must sell to earn enough revenue to cover cost, not making a profit or loss

Question 4

Cash

Answer 4

money in a bank account

Question 5

Cash Flow Cast

Answer 5

statement showing the expected flow of money into and out of the business over a period of time

Question 6

Closing Balance

Answer 6

amount of cash left at the end of each month= opening balance at the start of month

Question 7

Crownfunding

Answer 7

money raised through an appeal to the public

Question 8

Expenditure

Answer 8

money that the business pays out

Question 9

Expenses

Answer 9

costs of operating a business

Question 10

Finance Function

Answer 10

finance department in large companies

Question 11

Financial information

Answer 11

Details of profit,loss,cash flow,break-even used to help make decisions

Question 12

Fixed Costs

Answer 12

costs that stay the same

Question 13

Gross Profit

Answer 13

sales - cost of sales

Question 14

Gross profit margin

Answer 14

gross profit
—————– X 100
sales

Question 15

Interest

Answer 15

amount of money that has to be paid on borrowed money

Question 16

Income

Answer 16

money the business receives

Question 17

Liquidity

Answer 17

ability of the business to pay its short-term debts

Question 18

Loans

Answer 18

sum of money borrowed with a rate of interest

Question 19

Loss

Answer 19

costs being higher than revenue

Question 20

Margin of safety

Answer 20

when the business output is greater than break-even output

Question 21

Negative cash flow

Answer 21

more cash is flowing out the business than flowing in