Unit 5 key terms v2 Flashcards
1
Q
return on investment
A
a calculation of the monetary value of an investment compared to its cost
2
Q
debts
A
when a company borrows money, they are in debt and have to repay the money, usually with interest
3
Q
profit
A
the money left over once business expenses have been paid
4
Q
cash flow
A
the total amount of money being transferred in and out of a business
5
Q
favourable variance
A
occurs when a cost is less than expected or a revenue is more than expected
6
Q
adverse variance
A
occurs when a cost is more than expected or a revenue is less than expected
7
Q
net cash flow
A
the total inflows minus the total outflows
8
Q
break even output
A
when total revenue is equal to total costs
