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13 Cards in this Set
- Front
- Back
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Average rate of return equation |
(Average annual profit/cost of investmemt)x100 for percentage |
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Internal source of money examples |
Retained profits,owner funds,money from leasing equipment |
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External source of money examples |
Bank loan,mortgage,government grant,trade credit |
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Income statement use |
Shows income and profit and loss.Good for people to see how well the company is doing |
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Debtor defenition |
Someone that owes you money |
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Creditor defenition |
Someone you owe money to |
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Factors affecting choice of finance(getting funds) |
Size of company,type of company,costs, |
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Revenue defenition |
Money made by the business before deducting cost |
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Gross profit equation |
Turnover-cost of sales |
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Operating profit equation |
Gross profit-expenses |
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Net profit equation |
Operating profit-taxes |
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Variable cost defenition and example |
A cost that changes depending on ouptut e.g taxes |
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Fixed cost defenition and example |
Costs that do not change depending on output of sales e.g rent for facilities |
