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Builder Registration > BUSINESS finance > Flashcards

BUSINESS finance Flashcards

1
Q

Definition of: Current Assets

A

Assets that can be cponverted into cash within 1 year or less ie cash in bank, inventory etc

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2
Q

Defintion of Fixed Assets

A

Long Term Assets that a company owns ie property, land, vehicles

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3
Q

Defintion of Total Assets

A

All current and fixed assets

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4
Q

Definition of: Current Short Term Liabilities

A

Current and short term liabilities are liabilities that are due and payable within 1 year ie accounts payable, wages, income tax

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5
Q

Definition of: Current Long Term Liabilities

A

Liabilities that are due after a year or more

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6
Q

Definition of: Total Liabilities

A

Adding all short term and long term liabilities

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7
Q

Definition of: Net Assets

A

Total assets - total liabilities

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8
Q

Definition of: Annul Budget

A

Business expenditure for a financial year, helps businesses balance out the expenditure with the income/revenue

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9
Q

Definition of: Employment Agreement / Awards

A

Minimum conditions for employees with employment contracts/agreements setting out employment conditions

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10
Q

Definition of: Balance Sheet

A

Shows a picture of the financial health of a business at a given moment in time, it lists business assets & liabilities. Helps work out your working capital ($ for day to day activity) & business liquidity (how quickly you can pay your current debts)

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11
Q

Definition of: Equity

A

The value ownership interest in a business calculated by deducting liabilities from assets

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11
Q

Definition of: BAS

A

Business Activity Statement used to report your business tax entitlements and obligations for a reorting period. Inc GST, PAYG, FBT

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12
Q

Definition of: Business Plan

A

Document setting out a businesses future objective and strategies to achieve them

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13
Q

Definition of: Capital

A

Wealth min the form of money or property owned by a business

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14
Q

Definition of: GST

A

10% tax on most goods, services & other items sold or consumed Businesses should register for GST when a gross business income (minus GST) is over $75,000 annually

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15
Q

Definition of: Fixed Cost

A

A cost that is not part of producing a good or service

16
Q

Definition of: Gross Profit

A

Difference between sales and the direct cost of making the sales

17
Q

Definition of: Gross Income

A

Total money earned before deducting expenses

18
Q

Definition of: Net Profit

A

A cost that is not part of producing a good or service

19
Q

Definition of: KPI - Key Performance Indicator

A

A measurement using data to show how well your business is performing, looks at gross sales, net sales, gross profit and net profit between jobs annually

20
Q

Definition of: Liquidity

A

How quickly you can convert assets to cash

21
Q

Definition of: Liabilities

A

financial expenses or amount owed

22
Q

Definition of: Margins

A

Difference between the selling price of a good or service and the profit

23
Q

Definition of: PAYG - Pay As You Go

A

PAYG withholding income tax from an employee or a contractors salary or wage. Employer pays tax directly to ATO

24
Q

Definition of: Profit & Loss Statement

A

An income statememnt listing sales and expenses, can be used to work out gross and net profit of a business

25
Q

Definition of: Receipts

A

Document confirming payment and sale of a good or service

26
Q

Definition of: Tax Invoice

A

Shows the supply of goods and service at a specific price. Tax invoice is required when claiming GST credit

27
Q

Definition of: Working Capital

A

Cash available to a business for day to day expenses

28
Q

Definition of: Overhead Expenses

A

Fixed costs associated with operating a business such as rent or marketing

29
Q

Definition of: Prime Cost Item

A

PC item is an item not selected at time of signing a contract. PC item includes the cost of supply of the item only ie appliances

30
Q

Definition of: Provisional Sum

A

PS are an allowance for works that will be carried out but cannot be priced exactly at the time of signing a contract. Can include materials, labour and plant hire. Ie site works, service connections and structural elements not yet designed.

31
Q

Definition of: Dispute Resolution

A

An impartial person assisting those in a dispute to resolve any issues between parties. Main types of DR are Mediation, Arbitration and Conciliation

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