Term
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Definition
| The collecting, recording, compiling and forecasting of financial information. |
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Term
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Definition
| When the variance between actual and budgeted figures results in lower profit. |
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Term
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Definition
| A statement of the organisation's assets and liabilities at a precise point in time. |
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Definition
| When an individual is unable to pay its liabilities, debts and payments. |
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Definition
| When the company's total costs equal its total revenue; therefore it is no longer making a loss. |
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Term
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Definition
| Individuals or other businesses that are owed money by the business. |
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Term
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Definition
| This is the total amount of capital or money put into the business. |
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Term
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Definition
| People or companies that owe the business money. |
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Term
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Definition
| Costs which don't vary with output e.g. rent. |
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Term
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Definition
| Limited company - shares not available through the stock market. |
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Term
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Definition
| The amount by which demand can fall before the company begins to make a loss. |
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Term
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Definition
| The money that a business owes to others, such as bank loans, overdrafts and trade credit (money owed to suppliers) |
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Term
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Definition
| Public limited company - shares are available to the public on the stock market. |
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Term
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Definition
| A proportion of sales revenue which can be expressed as a total or on a per unit basis. |
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Term
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Definition
| Costs which vary with output e.g. raw materials. |
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Term
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Definition
| This is used for a medium sized business when they need extra capital but are unable or unwilling to float on the stock market. |
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Term
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Definition
| The day to day finance needed for running a business. |
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Term
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Definition
This measures the liquidity of a business and is calculated by the ratio of current
assets minus stock to current liabilities. |
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Term
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Definition
| Everything that a company owns and has a money value. |
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Term
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Definition
An account that gives a statement of a firm’s wealth on a particular date and
shows its assets, liabilities and capital. |
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Term
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Definition
A prediction of future flows of cash into and out of a business set out in a chart
or graph. |
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Term
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Definition
| A situation where a firm finds itself short of cash because the outflow is greater than the inflow. |
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Term
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Definition
| A situation where the cash inflow is greater than the cash outflow. |
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Term
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Definition
The cost of goods made or bought by a business. It is calculated by taking
opening stock + purchases – closing stock. |
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Term
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Definition
| This measures a firm’s ability to pay short term debts by comparing its current assets with its current liabilities. |
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Term
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Definition
| Payments made to shareholders from the profits of a company. |
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Term
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Definition
Money borrowed for at least ten years which will be used to start up larger
businesses, to buy lifelong assets such as buildings and to pay for large scale expansion. |
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Term
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Definition
Money borrowed for between three and ten years which may be used to buy
assets such as machinery, to set up the business and to pay for small scale
expansion. |
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Term
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Definition
Money borrowed for between one day and three years. It is mainly needed to
help cash flow, to buy assets such as vehicles and to buy in additional stocks of
materials. |
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Term
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Definition
| Money given to a firm to help it to operate and expand. This does not have to be paid back. |
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Term
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Definition
| The buying of equipment by paying in instalments, usually including interest. |
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Term
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Definition
| The difference between inflows and outflows. |
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Term
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Definition
| Profits kept back in the company as a reserve or for re-investment. |
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