Shared Flashcard Set

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IB Business - Accounting and Finance
N/A
15
Business
12th Grade
06/02/2011

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Cards

Term
Internal Finances
Definition
Finances from the business's assets or sales.
Term
External Finances
Definition
Finances from sources outside of the business.
Term
Debentures
Definition
A long term loan
Term
Hire Purchase
Definition
A company pays for equipment in installments, and owns the product once it has been completely paid for.
Term
Equity
Definition
Ownership of stocks in a corporation.
Term
Payback Period
Definition
The time it will take for an investment to "pay for itself." Cost of the investment divided by annual cash inflow.
Term
Fixed Cost
Definition
Cost of production that does not vary with amount of product produced.
Term
Variable Cost
Definition
Cost of production that varies with amount of product produced.
Term
Direct Costs
Definition
Cost of resources directly used in the production process.
Term
Breakeven
Definition
The point at which total revenue is equal to total costs.
Term
Profit and loss account
Definition
Records sales revenue and costs at a certain period in time.
Term
Profitability Ratios
Definition
Measures the profitability of a company
Term
Efficiency Ratios
Definition
Measures how efficiently a company is employing their resources
Term
Liquidity Ratios
Definition
Measures the business's ability to turn assets/stocks into cash.
Term
Gearing Ratios
Definition
Measures the risk of a business investment.
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