General Finance
What is the term for the total value of all goods and services produced by a country in a year?
What is Gross Domestic Product (GDP)?
This is the profit generated by a company that is not distributed to shareholders but kept for investment or to pay off debt.
What is retained earnings?
This is a loan obtained from a bank where the borrower agrees to pay back the principal, plus interest.
What is a bank loan?
This is a prediction of how cash will flow through a business over a future period.
What is a cash flow forecast?
This is the process of planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization.
What is financial management?
Selling company assets to generate cash is known as?
What is asset disposal?
Funds raised by issuing shares of the company to the public for the first time.
What is an Initial Public Offering (IPO)?
This key component of a cash flow forecast represents the cash entering the business from sales or other income.
What are cash inflows?
Name the financial statement that shows the assets, liabilities, and equity of a company at a specific point in time.
What is a balance sheet?
This term refers to reducing the inventory a company holds to free up cash.
What is inventory reduction?
A long-term lease agreement that includes the option to purchase the asset at the end of the lease term.
What is lease financing?
This represents money going out of the business, such as payments to suppliers, salaries, and rent.
What are cash outflows?
This term describes the cost of borrowing money or the return on investment for savings.
A method of generating funds internally by speeding up the collection of receivables or extending the payment terms of payables.
What is working capital management?
This type of finance is raised through the sale of debt.
What is debt factoring?
A cash flow forecast helps businesses ensure they have enough cash to cover these, which are short-term financial obligations.
What are liabilities?
This ratio measures a company's ability to pay short-term obligations or those due within one year.
What is the current ratio?
This internal source involves employees contributing ideas for efficiency improvements, which can save costs and improve profitability.
What is cost-saving initiatives by employees?
Money given to a business in exchange for a share of ownership but not required to be repaid.
What is equity financing?
The difference between the cash inflow and outflow in a given period. If negative, it indicates a potential problem area.
What is net cash flow?