Finance - N5 Business Management

Income Statement: Gross Profit - Expenses = 

Taking more money out of a bank account than is available 

Wages, Electricity, Rent and Stationery are examples of ...

A sum of money borrowed to purchase land or property, repaid with interest

Owners taking too much money out of the business can result in poor cash flow

Money made from selling a product or service to the customer

Revenue - Total Costs = 

A sum of money that is given for a specific purpose, does not need to be repaid

Costs that do not change, regardless of output

Cash flow can be improved by ...

Fixed Costs + Variable Costs

The point at which total revenue is the same as total costs

Raw materials are an example of ...

Giving customers long credit terms can result in poor cash flow

A sum of money borrowed for a fixed period of time, repaid with interest

Private sector businesses have the aim of making a ...

Costs that change dependent on output

Income Statement: Sales - Cost of Sales = 

A cash budget will show ...

Cash Budget: (Opening Balance + Total Receipts) - Total Payments =