unit 5

Question 1

revenue

Answer 1

money from sales

Question 2

interest

Answer 2

amount of money that has to be paid back on borrowed money

Question 2

average rate of return

Answer 2

method of measuring and comparing the profability of investment over its life

Question 2

loss

Answer 2

when costs are greater than revenue

Question 2

expenses

Answer 2

cost of operating the business

Question 2

sale of assets

Answer 2

sold by the business

Question 2

crowdfunding

Answer 2

money raised by an appeal to the public

Question 2

overdraft

Answer 2

arrangment with bank for business to spend more money than it has in its account

Question 3

retained profit

Answer 3

money not distributed to owners

Question 4

loan

Answer 4

sums of money borrowed for a certain period at an agreed rate of interest

Question 5

owners capital

Answer 5

money from savings put into the business by the owner

Question 6

break even forecast

Answer 6

prediction about the break even quantity based on future sale revenue predictions

Question 7

break even quantity

Answer 7

amount a business must sell to cover costs

Question 8

margin of safety

Answer 8

point where business output is larger than break even output

Question 9

cash fow forecast

Answer 9

show the expected cash flow out the business

Question 10

inflows? ouutflows?

Answer 10

-cash coing into the business
-cash coming out

Question 11

expenditure

Answer 11

money that business pays out

Question 12

opening balance

Answer 12

cash available at the start of the month

Question 13

closing balance

Answer 13

cash available at the end of the month

Question 14

finance function

Answer 14

finance department for the business