Definitions Flashcards

1
Q

Assets meaning?

A

What a business owes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Break even meaning?

A

When you don’t make a profit or a loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Budgetary control meaning?

A

When you are comparing what you’re hoping to happen to what actually happened, in terms of budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Budget meaning?

A

The amount of money that you can spend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Cash flow forecast meaning?

A

Predicting how much money is coming in and out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Cost of sales meaning?

A

The money you receive from selling a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Creditor meaning?

A

The money the business owes a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Debtor meaning?

A

When you owe money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Direct costs meaning?

A

Costs that directly lead to a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Expenditure meaning?

A

All the money coming out of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Fixed costs meaning?

A

Costs that will always be there and won’t change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Gross profit meaning?

A

Money you have expenses are taken away

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Income statement meaning?

A

Predicts how much a business is going to make

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Indirect costs meaning?

A

Costs that are not directly linked to the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Liabilities meaning?

A

All the things you owe to another business, can be short or long term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Loss meaning?

A

When expenditure is greater than the revenue

17
Q

Margin of safety meaning?

A

Actual sales - break even

18
Q

Net profit meaning?

A

Gross profit - expenses

19
Q

Operating costs meaning?

A

Costs a business pays on a regular basis e.g rent

20
Q

Overheads meaning?

A

Expenses you have to pay even if you don’t make any money

21
Q

Profit revenue meaning?

A

When your revenue is greater than your expenditure

22
Q

Start up costs meaning?

A

The costs you pay when you start up your business

23
Q

Statement of financial position meaning?

A

Balance sheet: what a business owes and doesn’t owe

24
Q

Variable costs meaning?

A

Costs that change depending on output.

25
Q

Variance meaning?

A

Difference between the budget and the capital

26
Q

Working capital meaning?

A

Paying day to day expenses