Finance Flashcards
1
Q
Sources of Finance
A
- Bank Loan
- Mortgage
- Share Issue
- Business Angels
- Grants
- Retained Profits
2
Q
Purpose of Cash Budgets
A
- Highlights when negative cash flow is expected
- Motivational for employees
- Monitor spending
- Plan investments
3
Q
Annual Accounts
A
Income Statement
- Shows gross profit or loss over period of time
- Shows profit or loss for the year
Statement of Financial Position
- Shows value of business at certain time
4
Q
Ratios
A
Gross Profit Ratio - Gross Profit/sales x 100
Profit for the year ratio - Profit for the year/sales x 100
Acid test ratio - Ability to pay short term debt without selling stock, ratio 1:1
5
Q
Technology in Finance
A
- Spreadsheets
- Emails
- Word
- Online Banking
- Online gvmt website
