Management of Finance - Unit 5

Question 1

What are Sources of Finance?

Answer 1

Selling Shares
Retained Profits
Government Grants
Venture Capitalist
Leasing or Hire Purchase
Mortgage
Bank Loan
Sale of Assets
Bank Overdraft
Trade Credit
Debt Factoring
Debentures
Crowdfunding

Question 2

What is Cash Budgeting?

Answer 2

A Cash Budget is a prediction of the flow of cash in and out of an organisation. It is normally shown for a quarter of a year (3 Months)

Question 3

What is an Income Statement?

Answer 3

• Provides information for stakeholders, customers, etc.
• Allows the business to monitor its own activities

Question 4

What is a Statement of Financial Position?