Finance Flashcards
(8 cards)
1
Q
What is revenue?
A
The income a business earns from selling goods or services.
2
Q
What is the formula for profit?
A
Profit = Revenue - Costs
3
Q
What is a source of long-term finance?
A
Bank loan, share capital, retained profit.
4
Q
What is cash flow?
A
The money coming in and going out of a business.
5
Q
What is a cash flow forecast?
A
A prediction of future cash inflows and outflows.
6
Q
Name a short-term source of finance.
A
Overdraft, trade credit.
7
Q
What is break-even?
A
The point where total revenue equals total costs.
8
Q
What is the break-even formula?
A
Break-even = Fixed Costs ÷ (Selling Price - Variable Cost per Unit)
