Provide information in quantitative terms about requirements to achieve a particular purpose
What is Budgets?
100
Relate to the main activities of a business and may include budgets relating to sales, production, raw materials, direct labour, expenses and cost of goods sold
What is Operating budgets
100
relate to capital expenditure and research and development
What is project budgets
100
Relate to financial data of a business and include the budgeted income statement, balance sheet and cash flows
What is Financial budgets
100
they are the mechanisms employed by a business to ensure that data are recorded and the information provided by record systems is accurate, reliable, efficient and accessible
What is Record systems
200
it is the risk to a business of being unable to cover its financial obligations
What is Financial risk
200
are the policies and procedures that ensure that the plans of a business will be achieved in the most efficient way
What is financial controls
200
relates to the short term and long term borrowing from external sources by a business
What is debt finance
200
relates to the internal sources of finance in the business
What is equity finance
200
it is a financial statement that indicates the movement of cash receipts and cash payments resulting from transactions over a period of time
What is cash flow statement
300
it is a summary of the income earned and the expenses incurred over a period of trading
What is income statement
300
is the value of stock that a business has sold to its customers
What is cost of goods sold
300
is that part of a business's profit that represents operating income minus cost of goods sold
What is Gross profit
300
is the difference between gross profit and expenses
What is net profit
300
represents a business's assets and liabilities at a particular point in time, expressed in money terms, and represents the net worth of the business
What is a balance sheet
400
are items of value owned by the business.
What is asset
400
claims by people other than owners against the assets (items of debt) and represent what is owed by the business
What is liabilities
400
is the funds contributed by the owner and represent the net worth of the business
What is owners equity
400
which forms the basis of the accounting process, shows the relationship between assets, liabilities and owners equity
What is accounting equation
400
involves working the financial information into significant and acceptable forms that make it more meaningful, and highlighting relationships between different aspects of a business
What is Analysis
500
is making judgement and decisions using the data gathered from analyis
What is interpretation
500
is the extent to which a business can meet its financial commitments in the short term
What is liquidity
500
is the extent to which the business can meet its financial commitments in the longer term
What is solvency
500
is the ability of a business to minimise the costs and manage its assets so that maxium profit is achieved with the lowest possibly level of assets
What is efficiency
500
refer to either money owed to the business or by the business