Definitions Flashcards
(26 cards)
Assets meaning?
What a business owes
Break even meaning?
When you don’t make a profit or a loss
Budgetary control meaning?
When you are comparing what you’re hoping to happen to what actually happened, in terms of budget
Budget meaning?
The amount of money that you can spend
Cash flow forecast meaning?
Predicting how much money is coming in and out
Cost of sales meaning?
The money you receive from selling a product
Creditor meaning?
The money the business owes a customer
Debtor meaning?
When you owe money
Direct costs meaning?
Costs that directly lead to a product
Expenditure meaning?
All the money coming out of a business
Fixed costs meaning?
Costs that will always be there and won’t change
Gross profit meaning?
Money you have expenses are taken away
Income statement meaning?
Predicts how much a business is going to make
Indirect costs meaning?
Costs that are not directly linked to the product
Liabilities meaning?
All the things you owe to another business, can be short or long term
Loss meaning?
When expenditure is greater than the revenue
Margin of safety meaning?
Actual sales - break even
Net profit meaning?
Gross profit - expenses
Operating costs meaning?
Costs a business pays on a regular basis e.g rent
Overheads meaning?
Expenses you have to pay even if you don’t make any money
Profit revenue meaning?
When your revenue is greater than your expenditure
Start up costs meaning?
The costs you pay when you start up your business
Statement of financial position meaning?
Balance sheet: what a business owes and doesn’t owe
Variable costs meaning?
Costs that change depending on output.
