Gcse Business Studies Finance Terms and Words
Key terms and words are what you need to add to any essay or exam and below is a full list of those for finance covering the GCSE syllabus.
<!– @page { size: 21cm 29.7cm; margin: 2cm } P { margin-bottom: 0.21cm } Cash-flow forecasting – Planning the cash flowing in and out of the business and making sure there is always enough money to pay the bills.
Budget planning – Setting the financial budgets for the business and each department within it.
Raising finance – Analysing financial requirements and selecting the most appropriate source of finance for a project.
Management accounting – Identifying methods of controlling costs to make the business more efficient and therefore increasing its profits.
Financial accounting – Drawing up and interpreting the financial records of the business and producing an analysis and evaluation of its finances for internal and external use.
Cash-flow statement – Is a record of all incomes and expenditures which happen in a given time period.
Cash-flow problem – Is when a business has insufficient to cash to cover the day-to-day expenditure.
Revenue expenditure – Is the money used for the day-to-day running of the business which is paid for by working capital.
Capital expenditure – Is the money used to start-up the business and to make large purchases such as new machinery.
Internal sources – The finance which already exists in the business such as profits.
External sources – Is the finance which comes from outside of the business such as bank loans.
Rights issue – Is when a company offers more shares to existing shareholders.
Debentures – Long-tern loans which are issued by limited companies which have a fixed rate of interest and a agreed payment date.
Overdraft – A short-term solution to cash-flow problems were interest is charged on a daily basis.
Accounting – The way financial activity is recorded and used.
Gross profit – The profit before any expenses are deducted.
Trading account – A simple record of gross profit.
Cost of sales – The value of the stock that has been sold during the year.
Depreciation – The fall in the value of fixed assets over time.
Net profit – The profit after expenses have been deducted.
Appropriation account – An account that shows how the profit has been used by the company.
Profit and loss account – A detailed account showing the net profit or loss over a period of time.
Balance sheet – A sheet containing the details of the financial state of the business at a particular time.
