Financial Management and Planning

Question 1

What are the two best things you can do to manage your business successfully

Answer 1

To make sure you understand your financials
To develop marketing strategies that are based on real data and customer feedback

Question 2

Accounting includes:

Answer 2

• Accounting includes:
  
  • Recording business transactions
  • Reporting accounting information
  • Evaluating and aiding decision making with specific reports

Question 3

2 things to succeed to in your business

Answer 3

Cash
Profit

Question 4

What is cash

Answer 4

Cash is the funds available for your businesses to meet its obligation as they fall due.

Question 5

What are the three important doucments you need

Answer 5

Income statement
Balance sheet
Cashflow statement

Question 6

What is difference between gross profit and net profit

Answer 6

• Gross Profit = Sales - Cost of Sales
• Net Profit = Gross Profit - Expenses

Question 7

What is assets

Answer 7

Assets = Liability + Equity

Question 8

What are examples of equity

Answer 8

Seed captial, retained earning

Question 9

Cash can be generated from 3 main sources

Answer 9

Operating activities
Investing activities
Finanicing activities

Question 10

What are some cashflow problems

Answer 10

• No working capital
• Salaries stretech
• Overdraft limit
• Taxation arrears
• Creditor arrears
• Lack of profitablity

Question 11

What is budgeting

Answer 11

Financial or monetary plan of
action incluedes income, expenditure and capital.