Finance #2 Flashcards
availability of funds
the ease with which a business can access funds (for borrowing) on the international financial markets
what effects availability of funds
risk, supply and demand and domestic economic conditions
interest rates
cost of borrowing money
what are the factors that determine a businesses financial needs
size of business, phase of business cycle, future plans for growth and development, capacity to source finance, management skills
budgets show
requirements for the business to achieve a particular goal
operating budgets
main activities of business - sales production, expense, raw materials - labour hours
project budgets
capital expenditure, research and development
financial budgets
the financial data of the business - income statement, balance sheet, cash flow statement
record systems
mechanisms employed by businesses to ensure that data are recorded and information provided by record systems is accurate, reliable, efficient and accessible
financial risk
risk of a business of being unable to cover its financial obligations
financial controls
policies and procedures ensuring that the plans of a business will be achieved in the most efficient way
sections of a cash flow statement
operating activities, investing activities, financing activities
cash flow statement
indicates the movement of cash receipts and cash payments resulting from transactions over a period of time
income statement
summary of the income earned and expenses inccured over a period of trading
different categories of expenses
selling, administrative, financial
