Business Finance

4. A buy now pay later agreement with suppliers.
9. Current assets divided by current liabilities
14. Gross profit minus expenses.
16. Selling debts to a financial institution to raise quick cash.
17. Opening inventories plus purchases minus closing inventories
18. Examples of these include cash debtors, inventories and prepayments
20. Costs that do change with output.
21. An agreement with the bank that allows more money to be withdrawn than there is in the account.
22. The level of output required for revenue to be equal to total costs.
23. Costs that do not change with output.
25. Selling price multiplied by Sales
26. Retained profit, net current assets and sale of assets are all examples of this source of finance.

1. Examples of these include buildings, vehicles and machinery.
2. Day to day spending by a business, e.g. rent or wages.
3. Spending on asset that will remain in the business for a long time.
5. Examples of these include creditors, overdrafts and accruals.
6. Current assets minus stock divided by current liabilities
7. Net cash flow plus opening balance.
8. An external source of finance provided by the government it does not have to be repaid.
10. The value of an asset after depreciation has been deducted from the historic cost.
11. An agreement that allows a business to use an asset whilst paying for it in instalments.
12. The cost of borrowing or reward for saving money.
13. Inflows minus outflows.
15. Revenue minus cost of sales
19. Fixed costs plus total variable costs
24. Fixed costs divided by contribution per unit