topic 2 management process part 2: finance,human resources, ethical buss behaviour Flashcards
business prelims
what is finance phase responsible for
organises the financial resources needed to pay for all aspects of each key business function
how is money movement recorded and summarised
financial statements
list the three main financial statements
income statement
balance sheet
cash-flow statement
what is a income statement
how much the business sold,how much at cost to make these sales
what is gross profit
the amount of profit made after deducting all of the cost of sales
what is net profit
the amount of profit made after deducting the expenses from gross profit
what does COGS stand for
cost of good sold
what is cost of good sold
is the cost the business had to pay for the goods it later sold to the customer
what is the equation for gross profit
gross profit = sales revenue- COGS
what is the equation for Net profit
Net profit = Gross profit - Expenses
what is the equation for COGS
COGS = (opening stock + purchases) -closing stock
what is a balance sheet
a statement showing the net worth of a business on a particular day
what is net worth
the total value of something
what does the balance sheet do
it indicates the assets and debts(or liabilities) of a business
What is the equation for the owners Equity
Owner’s equity = assets - liabilities
what is the owner equity
the net worth of the business if it where to be sold
what is an asset
what you own
what is a liabilitie
what you owe
what dose the term current mean in bussiness
within the first 12 months
what does the term non-current mean in bussiness
over 12 months
what is working capital
is available to meet day to day, ongoing expense of the business
what is the equation for working capital
Working Capital = Current Assets - current liabilities
what is a cash flow statement
a statement that indicates the cash balance position at the end of the accounting period.
what is a cash flow fortcast
a proposed or estimate picture of cash income and cash receipt for future period
what is a cash receipt
money coming into the business
what is cash payments
money leaving the business
what is cash balence
amount of cash the business has
who would want to read your financial statements
lenders
competitions
name the 4 stages in the human resources cycle
recruitment
training
employment
voluntary/involuntary separation
what is ethical business behaviour
behaviour that reflect the code of condust
what is a code of conduct
a set of values that are upheld by the business, it’s managers and it’s staff
