Shared Flashcard Set

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Finance
Business HSC Finance topic
19
Business
12th Grade
05/11/2014

Additional Business Flashcards

 


 

Cards

Term
Bankruptcy
Definition
declared in law as unable to pay their debts
Term
profit
Definition
what remains from revenue after al expenses have been paid
Term
sole trader
Definition
an unincoporated business with one owner
Term
drawings
Definition
when the owner of the business takes money out for their own use
Term
dividened
Definition
the income earned from owning shares in a company.
Term
gross profit
Definition
the revenue remaining after paying the costs of goods sold; that is the expenses of purchasing the goods wholesale and transporting them to the business ready for sale
Term
Net Profit
Definition
The final amount of revenue remaining after all expenses have been paid
Term
Invoice
Definition
A bill sent to a customer requiring payment by a specified date.
Term
liquiditys
Definition
indicates how much ready cash is available in a business. current assests are listed in order of liquidity, which is how easily they can be turned into cash
Term
debtors
Definition
the businesses or individuals that owe money to a business
Term
liabilities
Definition
amounts of money owed to individuals ex suppliers
Term

current assets 

 

Definition
assets (such as cash in the bank and accounts receivable) that earn revenue for a business in the short term. Usually fewer than 12 months.
Term
current liabilities
Definition
Money that is owed to an external business or person that will be repaid in the short term
Term
accounts payable
Definition
the money a business owes to its suppliers and service providers
Term
creditors
Definition
the businesses, financial institutions and individuals to which a business owes money. also known as accounts payable
Term
accounts recivable
Definition
a current asset that represents money owed to the business in the short term. This money is owed to the business by customers who are yet to pay for goods or services they have already recived
Term
solvency
Definition
the ability of the business to pay both short term and long term liabilities as they fall due
Term
Gearing
Definition
How much debnt finance the business has accuired to fund its operations compared to its use of equity finance
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