Business Finance Revision Mindmap

Budgets
1. Budgetting
2. Budgetary Control
Breakeven
1. Formula = FC / (SP-VC)
2. Breakeven is the point where the business makes no profit and no loss
3. Margin of Safety
4. Benefits of Breakeven
5. Limitations of breakeven
Profit and Loss
1. Sometimes called an Income Statement
  1. Trading Account
    1. Calculated Gross Profit by taking Costs of sales from turnover
      1. Then take the operating costs to leave net profit
Balance sheets
1. Sometimes called an Statement of Financial Position
  1. This is a snapshot of a businesses situation on a particular day.
    1. Assets
      1. Fixed Assets
        Long term assets that the business must have to trade
      2. Current Assets
        Assets that are quickly changing. Cash, Stock, Debtors
    2. Liabilities
      1. Long-term Liabilities
        Debts to be paid over a long time
      2. Current Liabilities
        Money to be paid back within a year
Costs and Revenues
1. Start Up costs
2. Operating or running costs
3. Fixed Costs FC
4. Variable Costs VC
5. Semi Variable Costs SVC
6. Total Costs TC
7. Revenue TR
8. Profit
  1. Gross Profit
  2. Net Profit
Cash Flow
1. Cash Flow Forecasting
2. Cash Flow Statement
3. Cash Inflows
4. Cash Outflows
5. Net Cash Flow

Resource summary

	Created by annette ashworth almost 11 years ago