finance Flashcards
(9 cards)
grant
money that can be given to a business if they reach a certain criteria as an award and they do not have to repay the money
bank loan
money borrowed from the bank that needs to be repaid later on plus interest
grant benefits and costs
costs- may only be a one time thing
complicated to apply for as the business may need to reach certain requirements
benefits
does not need repaid
can be given to help start up a business
bank loan costa and benefits
costs- has to be repaid with interest
small business may find it harder to secure a loan as they may have to pay higher interest as their at greater risk
benefits- the business can budget for repayment
purchases of essential equipment can be purchased and paid back over several years
purpose of cash budget
decision making tool - this is a tool for future spending - 3 months time we are going to have this much money
surplus - lots of cash coming in to business
defecit - lots of money coming out the business
technology in finance
speeed sheets- graphs charts can be created from existing info to display finance info
powerpoint- display financial info at the shareholders meeting
online banking - payments can be made to staff employees (wages) defund to customers and they don’t have to wait long time for refund
income statement keybterms
sales revenue- the amount saved from selling goods or service
cost of sales
amount of money spent on selling goods
profit for the year
the profit from expenses made deducted by the the gross profits calculated by gross profit expenses
