Chapter 3: Finance Flashcards Preview

GCSE AQA Business Studies Unit 1 and Unit 2 > Chapter 3: Finance > Flashcards

Flashcards in Chapter 3: Finance Deck (16):
1

Profit

What is left after costs have been deduced from revenue

2

Loss

When revenue is less than costs

3

Costs

The expenses a business pays for in producing goods and services

4

Revenue

The amount of money a business receives from selling goods or services

5

Cash

Money that the business has available to it straight away, such as money in its bank account

6

Forecast

A technique where the business attempts to estimate

7

Cash Flow Forecast

A prediction of a business's future cash inflows and outflows, showing the closing balance

8

Bank Loan

Finance provided by the bank that will be paid back over a set period

9

Loan From Friends and Family

Finance provided by friends or family where the interest rate and repayment periods are agreed with them

10

Overdrafts

A flexible arrangement that allows a business to spend more money than it has in its bank account, as and when it needs the finance

11

Mortgage

Long-term finance loan for purchasing a building

12

Trade Credit

Suppliers who allow debts for goods and services to be paid one or two months after delivery

13

Grant

Money given to a business by a government or organisation

14

Net Cash Flow

Difference between cash in and cash out of a business over a time period

15

Opening balance

The money the business has at the start of the month. It is the closing balance from the previous month.

16

Closing balance

The amount of cash the business has at the end of each month