Types Of Outflow Flashcards
1
Q
Cash purchases
A
Something the business buys and pays at the time of purchase
2
Q
Credit purchases
A
Business buys item then pays it back over a period of time
3
Q
Rent
A
A monthly payment payed to landlord for premises
4
Q
Rates
A
Business rates are a tax on property used for a business
5
Q
Salaries
A
Fixed regular payments to employee
6
Q
Wages
A
Workers paid depending on how much they work
7
Q
Purchase of assets
A
Non current assets that a business is likely to keep for more than a year
8
Q
VAT
A
Businesses that are VAT registered must notify HRMC
Payment shown in cash flow forecast
9
Q
Bank interest paid
A
An interest that is incurred due to borrowing money is also an outflow
10
Q
Utilities
A
Electric,gas and water only ESSENTIAL services
