6. Finance Flashcards
1
Q
Revenue
A
The income generated from sales of goods or services.
2
Q
Costs
A
Expenses incurred by a business (fixed and variable).
3
Q
Profit
A
The financial gain made after deducting costs.
4
Q
Break-even
A
The point at which total revenue equals total costs.
5
Q
Cash-flow
A
The movement of money into and out of a business.
6
Q
Liquidity
A
A business’s ability to meet short-term financial obligations.
7
Q
Give the formula for:
the break-even point
A
Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit)
8
Q
Give the formula for:
Gross Profit
A
Revenue - Cost of Goods Sold
9
Q
Give the formula for:
Net Profit
A
Gross Profit - Expenses
10
Q
Give the formula for:
Margin of Safety
A
Actual Sales - Break-even Sales
