Learning Aim E Key Words Flashcards
Definition of cash flow forecast
Document that shows the predicted flow of cash into and out of a business
Definition of opening balance
Amount of cash available in a business at the start of a set period of time
Definition of closing balance
Cash available in a business at the end of a set period of time
Definition of credit period
The length of time given to customers to pay for goods and services
Definition of liquidity
Measures a firms ability to meet short term cash payments
Definition of insolvent
When a grim is unable to meet day to day expenditure short term cash payments
Definition for variable cost
Vary with level of output it increases when business increases
Definition of semi variable
Part of cost stays the some other varies due to business
Definition for fixed cost
Do not vary with output stays the same
Definition for total revenue
Total amount of money coming in from sales
Definition of total sales
Sales made in set time period
Definition selling price per unit
The amount a customer pays for each item bought
Definition for sales in value
Expressed in monetary value
Definition of sales in volume
Expressed as a quantity
Definition of cash sales
Pays at the time of purchase
Definition of credit sales
Pay pre agreed period 30 days after
Definition of loans
Fund purchase of asset money borrowed
Definition of capital introduced
Money invested when business setup or looking to expand by own or shareholder
Definition sales of assets
Items owned by business which is received from selling
Definition of bank interest received
Interest paid by back
Definition of cash purchases
Items purchased by business paid at that time
Definition of credit purchase
Paid at later date
Definition of purchase of asset
Non current asset which business keeps for more than 1 year like vehicle
Definition of VAT
Pay VAT to HMRC if registered business adds VAT when buying items
