Learning Aim E: Personal & Business Finance Flashcards
Forecast that predicts the cash inflows and outflows in future periods.
Cash Flow Forecasts
money coming into the business
Inflows
A sale in which cash is received for the total amount of the sale at the time of the transaction
Cash Sale
Goods sold to customers who will pay for these at an agreed date in the future
Credit Sale
Amounts of money borrowed which will accumulate interest
Loans
Money invested from entrepreneurs or shareholders when a
business is first set up or looks to expand
Capital Introduced
When a business sells off its unwanted or unused assets to raise funds
Sale of Assets
Interest paid by the bank on credit balances
Bank Interest Received
Money going out of the business
Outflows
Goods bought and paid for immediately
Cash Purchases
The value of materials and other supplies bought by a business on credit, to be paid at a later date.
Credit Purchases
A fee charged for the use of property or land
Rent
Business tax on non-domestic property used to fund local council services
Rates
The pay that employees receive over a fixed period, most often weekly or monthly
Salaries
An amount of money paid to an employee at a specified rate per hour worked
Wages
