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Flashcards in Financial Definitions Deck (25)
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0
Q

Financial objective

A

An objective of the finance department , such as increase profitability

1
Q

Financial strategies

A

These are the plans to structure and manage an organisation finances effectively in order to support the achievement of its medium to long term objectives

2
Q

Profitability

A

Profit expressed against another relevant figure , such as revenue or capital invested. It is the amount of profit and percentage return generated

3
Q

Dividend per share ( what it shows)

A

Total dividends divided by the number of issues shares in the company.shows how much shareholders are receiving per share they own

4
Q

Dividend yield (what it shows)

A

Attempt to judge the real returns from the dividends received by a shareholder by dividing dividends revived by the current share price and multiplying the answer by 100 to express as a percentage

5
Q

Assets

A

Items a business own that have value to it. Spending on these is a capital costs and assets and spending are recorded on the balance sheet

6
Q

Balance sheets

A

Capital document , which measures at a single point of time (snapshot ) , where a company got its funds from and what it spent them on , it’s assets ,liabilities and equity.

7
Q

Capital

A

The amount of the owners investment which will be equal to assets minus liabilities

8
Q

Capital costs

A

Monies spent on things the business has not used up in the last year , such as buildings and machinery

9
Q

Revenue costs

A

Monies spent on things the business has used up in the last year , such as stock power and wages . They no longer have any value to and are written off in the income statement

10
Q

Capital inflows

A

Sums received from the loans or the sale of shares. Recorded on the balance sheet

11
Q

Revenue inflows

A

Sums received from the loans or sale of their goods and services. Recorded on the income statement

12
Q

Inventories/stock

A

Goods the business intends to sell . In manufacturing business includes components , work in progress and finished products

13
Q

Trade accounts receivable

A

Suppliers the business owes money to and need to be paid in the next few weeks . A current liability

14
Q

Current liabilities

A

This is a debt that a business owes to an external body , which will need to be settled within 12 months

15
Q

Non current (fixed assets)

A

Items the business owns and has value to it . They will be kept for the next 12 months. Such as land buildings

16
Q

Liquidity

A

The amount of ready cash in a business and the sped with which assets can be turned to cash

17
Q

Intangible assets

A

Things the company owns and has value to it but are non physical resources such as brand names and rep

18
Q

Goodwill

A

An intangible assets that can be included in a balance sheet it is the difference between the net assets of a business acquired and the price paid for the business

19
Q

Going concern

A

The idea that if s business is viable and will continue to trade that all the asset placed on the balance sheet are valued as if the business where to continue trading rather than selling them

20
Q

Net current assets

A

Current assets - current liabilities . The money used for the day to day running of a business . It can be called working capital

21
Q

Overtrading

A

Where a business suffers financial difficulties from expanding too quickly

22
Q

Depreciation

A

Accountants way of spreading the costs of a fixed asses over its estimated lifetime.

23
Q

Reserves

A

Accumulated retained profit it is recoded on the balance sheet

24
Q

Income statement

A

A financial statement that summarises the trading results ( revenue entries) of a business over year