Social Sciences Economics Finance
AQA AS Level Business 7131 Units 1-6 / AQA A-LEVEL
BUSINESS Business Merged Question Paper + Mark
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FINA 320 Quiz 2 AAMS Module Quizzes (1-10) Sage 50 - Ch. 3 Revi
28 terms Teacher 374 terms Teacher 49 terms
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Goal or target pursued by the finance department (or function)
Financial objective
within an organisation
Measures the extent to which revenues from selling a product
Profit
over some time period exceed the costs incurred in producing it
Cash flow The movement of cash into and out of a business over time
Records a business' sales revenue over a trading period and all
Income statement
relevant costs incurred as well as the business' profit or loss
Income received from sales minus the cost of goods and
Gross profit
services sold
Expenditure that can clearly be allocated to a particular product
Direct costs
or area of the business e.g. raw materials and components
Expenditure that relates to all aspects of a business' activities,
Indirect costs such as maintenance costs for buildings or senior managers'
salaries
The financial surplus arising from a business' normal trading
Operating profit
activities and before taxation
A measure of a business' profits that takes into account a wider
Profit for the year
range of expenditures and incomes including taxation
The earnings or income generated by a firm as a result of its
Revenues
trading activities
The medium to long term goals established to coordinate the
Objectives
business
The purchase of assets such as property, vehicles and machinery
Investment
that will be used for a considerable time by the business
, Items that a business owns and which it expects to retain for one
Non-current assets
year or longer
Spending undertaken by businesses to purchase non-current
Capital expenditure assets such as vehicles and property (it is another form of
investment)
Refers to the way in which a business has raised the capital
Capital structure
required to purchase its assets
Financial plans that forecast revenue from sales and expected
Budgets
costs over a time period
The process of investigating any differences between forecast
Variance analysis
data and actual figures
State the inflows and outflows of cash that the managers of a
Cash flow forecasts
business expect over some future period
The period of time given by suppliers before customers have to
Trade credit
pay for goods and services
That level of output or production at which total costs exactly
Break even output
equal revenue from sales
Contribution The difference between revenue and variable costs
Measures the amount by which a business' current level of output
Margin of safety
exceeds break-even output
A measure of financial performance that compares a business'
Profitability
profits to some other factors such as revenue
A ratio that expresses a business' profit as a percentage of its
Profit margin
revenues over some trading period
A term used to describe a massive volume of both organised and
Big data
non-organised information that is very large
Primary market research Gathers data for the first time for a specific purpose
Internal source of finance A source of finance that exists within the business
An injection of funds into the business from individuals, other
External source of finance
businesses or financial institutions
Finance needed for a limited period of time, normally less than
Short term finance
one year
Sources of finance that are needed over a longer period of time,
Long term finance
usually over a year
The amount of money provided by a business for a stated
Bank loan
purpose in return for a payment in a the form of interest charges
Exists when a business is allowed to spend more than it holds in
Overdraft
its current bank account up to an agreed limit
Funds advanced to businesses thought to be relatively high risk
Venture capital
in the form of share and loan capital
Finance invested into a company as a result of the sale of shares
Share capital
in the business
Long term loans, repaid over periods of up to 50 years, and used
Mortgages
to purchase property
AQA AS Level Business 7131 Units 1-6 / AQA A-LEVEL
BUSINESS Business Merged Question Paper + Mark
Scheme
Save
Students also studied
Flashcard sets Study guides Practice tests
FINA 320 Quiz 2 AAMS Module Quizzes (1-10) Sage 50 - Ch. 3 Revi
28 terms Teacher 374 terms Teacher 49 terms
Preview Phylis_Wambui6 Preview Catherine_wanjiru8
Goal or target pursued by the finance department (or function)
Financial objective
within an organisation
Measures the extent to which revenues from selling a product
Profit
over some time period exceed the costs incurred in producing it
Cash flow The movement of cash into and out of a business over time
Records a business' sales revenue over a trading period and all
Income statement
relevant costs incurred as well as the business' profit or loss
Income received from sales minus the cost of goods and
Gross profit
services sold
Expenditure that can clearly be allocated to a particular product
Direct costs
or area of the business e.g. raw materials and components
Expenditure that relates to all aspects of a business' activities,
Indirect costs such as maintenance costs for buildings or senior managers'
salaries
The financial surplus arising from a business' normal trading
Operating profit
activities and before taxation
A measure of a business' profits that takes into account a wider
Profit for the year
range of expenditures and incomes including taxation
The earnings or income generated by a firm as a result of its
Revenues
trading activities
The medium to long term goals established to coordinate the
Objectives
business
The purchase of assets such as property, vehicles and machinery
Investment
that will be used for a considerable time by the business
, Items that a business owns and which it expects to retain for one
Non-current assets
year or longer
Spending undertaken by businesses to purchase non-current
Capital expenditure assets such as vehicles and property (it is another form of
investment)
Refers to the way in which a business has raised the capital
Capital structure
required to purchase its assets
Financial plans that forecast revenue from sales and expected
Budgets
costs over a time period
The process of investigating any differences between forecast
Variance analysis
data and actual figures
State the inflows and outflows of cash that the managers of a
Cash flow forecasts
business expect over some future period
The period of time given by suppliers before customers have to
Trade credit
pay for goods and services
That level of output or production at which total costs exactly
Break even output
equal revenue from sales
Contribution The difference between revenue and variable costs
Measures the amount by which a business' current level of output
Margin of safety
exceeds break-even output
A measure of financial performance that compares a business'
Profitability
profits to some other factors such as revenue
A ratio that expresses a business' profit as a percentage of its
Profit margin
revenues over some trading period
A term used to describe a massive volume of both organised and
Big data
non-organised information that is very large
Primary market research Gathers data for the first time for a specific purpose
Internal source of finance A source of finance that exists within the business
An injection of funds into the business from individuals, other
External source of finance
businesses or financial institutions
Finance needed for a limited period of time, normally less than
Short term finance
one year
Sources of finance that are needed over a longer period of time,
Long term finance
usually over a year
The amount of money provided by a business for a stated
Bank loan
purpose in return for a payment in a the form of interest charges
Exists when a business is allowed to spend more than it holds in
Overdraft
its current bank account up to an agreed limit
Funds advanced to businesses thought to be relatively high risk
Venture capital
in the form of share and loan capital
Finance invested into a company as a result of the sale of shares
Share capital
in the business
Long term loans, repaid over periods of up to 50 years, and used
Mortgages
to purchase property
