definitions fianace Flashcards
1
Q
financial year
A
trading period over which a business collects info for their annual income.
2
Q
assets
A
items that a business buys that normally last a long time.
3
Q
debtors (or trade receivables)
A
people who owe money to the business for goods or services they have recieved
4
Q
liabilities
A
amounts of money which a business owes
5
Q
cash flow
A
Cash flow is the movement of money in and out of the business.
6
Q
Insolvency
A
If a business runs out of cash and cannot pay its suppliers or workers it is insolvent.
7
Q
overdraft
A
An amount of money a business can temporarily owe to the bank.
8
Q
creditors
A
People you owe money to.
9
Q
working capital
A
This is money that a business can access immediately, rather than money that is tied up in investments or property.
