Learning Aim E Flashcards
Cash flow forecast
A financial estimate that predicts the inflow and outflow of cash in a business over a specific period, such as weekly, monthly, or quarterly.
Inflows
Refers to the incoming cash or financial resources a business or individual receives.
Cash sales
Refer to transactions where payment is made immediately, typically in the form of cash, debit, or credit card, at the point of sale.
Credit sales
These occur when a business sells goods or services and allows the customer to pay at a later date.
Loans
Sums of money borrowed from a bank or financial institution with an agreement to repay the principle amount along with interest over a specific period.
Capital introduced
Refers to the initial or additional funds invested into a business by its owners or shareholders.
Sale of assets
Refers to the transaction in which a business or individual sells physical or intangible assets.
Bank interest received
Refers to the income earned by a business or individual from the interest paid on their bank deposits.
Outflows
Refers to the cash or financial resources that leave a business, typically due to expenses, payments, or investments.
Cash purchases
Refers to transactions where a business or individual buys goods or services and pays for them immediately, typically with cash, debit card, or credit card.
Credit purchases
Refer to the practice of buying goods or services and agreeing to pay for them at a later date, rather than paying up front.
Rent
Refers to the payment made by a tenant to a property owner or landowner for the use of property, land, or equipment.
Rates
Refers to fixed charges or fees that are applied to goods, services, or financial transactions, often set by authorities or organisations.
Salaries
Refer to regular, fixed payments made by an employer to an employee in exchange for their work or services.
Wages
Refer to the payment an employee receives for the work they perform, typically calculated as an hourly, daily, or weekly basis.
Utilities
Refer to essential services provided to households and businesses for daily living and operational needs.
Purchase of assets
Refers to the acquisition of physical or intangible items by an individual or business for the purpose of investment, use in operations, or to generate future economic benefits.
VAT
A consumption tax levied on the value added to goods and services at each stage of production or distribution.
Bank interest paid
Refers to the amount of money a borrower (individual or business) pays to a bank or financial institution for the use of borrowed funds.
Break-even
Refers to the point at which a business’s total revenues exactly equal its total costs, resulting in neither profit nor loss
Costs
Refer to the expenses incurred by a business or individual in the production of goods or services, or in carrying out activities to operate a business.
Variable costs
Expenses that change in direct proportion to the level of production or sales volume.
Semi-variable
Costs that have both a fixed and a variable component.
Fixed costs
Expenses that remain constant regardless of the level of production or business activity.
Total costs
Refer to the sum of all expenses incurred by a business in the production of goods or services. It includes both fixed and variable costs over a given period.
Sales revenue
Refers to the total amount of money generated by a business from selling goods or services during a specific period.
Total sales
Refers to the overall amount of revenue a business earns from selling its goods or services within a specific period.
Selling price per unit
Refers to the amount of money a business charges for each individual unit of a product or service it sells.
Sales value
Refers to the total monetary worth of the goods or services sold by a business during a specific period.
Contribution
Refers to the amount of revenue from sales that is available to cover fixed costs and contribute to the business’s profits.
Margin of safety
Refers to the difference between the actual sales level and the break-even sales level. It measures how much sales can drop before a business reaches its break-even point, where it starts making a loss.
