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Scramble
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Hint
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Answer
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amwhkadcydes noaidyirnuaa emmiirente ftsbnnoascntn eouio si rlneoarhsllni ehrngs nndfanceafa etiucesf lsltoprewnai rct nnahese .faa
,s ao fsechpsaew ihp flll b a r erss eoscn ensye.meao ,seonfpssalebllbe ei.
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What does a Cash Flow Forecast do or show
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Monitors cash flow, financial statement.
Helps business keep an eye on finances and helps identify any areas of concern. Cash flow problems are the main reasons businesses fail, need regular and reliable cash flow. |
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pe uh vsg onou ehaip n a ts,gy iyeuenoiat a ueemnyedewineheqclicoti vo ttyrbsyhouv ot yruhn fnbadupah
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Advantage of mortgages
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Can buy a house even if you do not have enough savings, you build equity in the property with each payment
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lefyubtcaoynt tnesadtfacomdest c s,re it ksw nstrete oaoc nc o udboo nriae,wadh nvfltmo nchnnien amrpeoeye cpxitdliyaerl eee fceco n tan cra hy ehdaso oq e ntsptbtpa pa ihetea hgarios weafeamceerna fad
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Advantages of cheques
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Low risk form of payment as the cheque can only be cashed by the named payee, widely accepted for face to face and postal transactions, there is no need to provide change as it can be written for an exact amount
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i cdtfsiu ortinooxo ttsenbtlru itc/eanp
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Breakeven formula
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Total Fixed Costs / Contribution per Unit
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1sdafneieueeaa e e toi vrs6 i r s ciioy,l2hrso ttlss it1 oebun sysu rabinrss 7s e estaeis lrreiirfoly7,hahnui.r fv ear.attrtrn£a:iawn cet niwvs0beri e tln1rt e h.t sn:ecue vt1 esisisnh2ns nsoln nis rsitl u: txenifershtb£menxsa eia h,bouorutt ieaaeh6p£lrsss t uct c cieia£sl.n omoret s i1heaae.i
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What is Current Ratio
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Shows the amount of current assets in relation to current liabilities, expressed as x:1. So 2:1 means for every £2 a business has in current assets they have £1 in current liabilities. So, if the ratio is 6.7:1 then for every £6.70 a business has in current assets, it will have £1 in current liabilities.
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oco-uleaer tvs e fsss leanse
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Gross Profit formula
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Sales Revenue - Cost of Sales
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mnse in ti fseiesi nelca t rsa ottt,leg ldc t nsoafkabdvuaieute r ,ntkciercndekoael ssuaruteve cathc encoo u
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Disadvantage of pensions
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Invested in the stock market so is not risk free, value could fluctuate, cannot be accessed until a certain age
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ses ilenolc rri tipvi-etrlpbg asacu en
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Contribution per Unit formula
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Selling Price - Variable Costs per Unit
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xe vaiaeptpleet foe ccesdntuo esg rnaair
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Formula for reducing balance depreciation
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Value of asset x depreciation percentage
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rcsirys ftlstlb .anoisbrtuuh mae,n u,u /naanioof tnero,karogncnoloasa/esfiecalm ttoyeatda iotacccucy’ us r o uleltore lro ’vlipf a hpiapteo metisl asko dny scnr teusntdeeaficr/tan
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Disadvantage of cash
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Can get lost/stolen, risk of counterfeit/fake money, can’t be used online/virtually, only suitable for purchases up to a certain amount as it’s impractical to carry around loads of cash.
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toaiosrafnidfdn nem be c erd eeetodtagbeahiohp enpstwv wnsosolofne
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What are debt counsellors
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Professionals who offer independent advice on how best to manage debt
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k rhf m sp abe rndaoa knacntc lasonsinktse otgisaaao,g smeauntnirctgnuyeevdnattsslasdvaeiciudi ,ertnetesg ne ,fdori ueg rsdln iaaspri-dpmpinaesec casgti,mrnn .oinaeecm ndsia lrnade.tariigm,noecioeub cr ni
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What is a SOCI used for and what does it do
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A SOCI includes performance evaluation, investment decision making, trend analysis and forecasting, risk management, strategic decision making. Operating-based and cash supported, recurring and sustainable.
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i cdiekd e e renl aabess o bv ytaaay,p naatltspuead obd c nslrs bbdke ewtdratacbuhrrr idsuee ineo afy
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What is a current liability
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Debt owed by the business to be paid back in under a year like overdrafts, trade payables and accruals
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o raslnne a ehnapfem ta stemgneoo ta aofnnnyaeog sai-ardssboonnt bthfari m ee t gitiwvsf,tealdmiretstroirtrns ai osscihimor ochd-rnnnrrv
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What are credit unions
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Not-for-profit organisations that handle financial transactions and store money for its members, members are owners and have voting rights
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s,mesaiafceemaa ert xss eclee rntpmiierux nrp
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Disadvantage of Pet insurance
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extra expense, premiums increase after claims
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s ,nob una foest,esveoe mmggovnicsesb tr mur naaisth parfc giepsd dlsokf ros,din eftii eern ysb
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What are NS&I
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Offers secure saving options and is backed by the government, offers gilts, premium bonds, ISAs
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liupammete fsanph l eld, uf.be efsi varaiypen ut anndxfn oniliedote
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Disadvantage of charge cards
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Must be paid in full every month, often an annual fixed fee is applied.
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r en aemt fntadpyoyt oeer rcadnctmbaucrnh.t lr saonrefneoio tk
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What is electronic transfer
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Payment transferred directly from one bank account to another.
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b s seeiedit hdlycrn ,snotrrhetaummsuno uvtflcotrmcesuhcocagase eessrt- os nsrnooeio tng o se /
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What is capital income
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Income that comes from sources other than selling goods/services, used to buy non-current assets
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etsgurafpv ,ecga noaaalpt erooaoeilsptneairtd, tsdc trd, edleuroe giwic oienrnitdhn neni ,nenawe, smtatr taiiddg,tsn,ss,, guttpenipt re o ducuritatn g srfrc rss,raeaoaes,et ,avnniblnieds,nloe rcoi,hsce frooef esa ipnglc nr'g,secst
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Name all sources of finance in this order: OC, RP, C, VC, P2P, Le, HP, SOA, Lo, NCA, M, DF, ID, TC, G, D |
Owner's Capital, Retained Profit, Crowdfunding, Venture Capital, Peer to peer lending, Leasing, Hire Purchase, Sales Of Assets, Loans, Net Current Assets, Mortgages, Debt Factoring, Invoice Discounting, Trade Credit, Grants, Donations
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ns glaia,todunse,cnshel ivsii ocs atot sa ns mf l puif tenweevg pro sstnroo,tt ebdtsseelcvmaihhaie ediefn sisfndeareeititneviritt a pinnonactrfn aeseaou,b ma i ehr cdnnogtd
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What is IFA
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Professionals who offer independent advice to their clients about their financial matters, but it has a fee, it includes advice on savings, investments, mortgages and pensions
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u nnte ota su ai t e semntdodyndnaoboebrnklehbio fvaopve
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Define margin of safety
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Amount of units sold above and beyond the breakeven point
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ractocopounom f s o iofputmo aao sctuet aek nimarnmao eotekn non nei raacp naenfty orharecorbyc teatdmro ’st we t nf
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What are cheques
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A written order to a bank to make a payment for a specific amount of money from one person’s account to another account
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nsye kipacweighwuac axcrya naatfae ieivweso nmiifa on eiom d ty.a ir neirpdoeaserv e irs afeelo harnlmyooftsr,a cvsnsniyoan as t idrtnteiaouehnaklit mey ot aytt o vo sotuuponoal rtrsen.eeottrengh yfoahsaeslse annouvdo a dn rtgi g n iutala
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What is an ISA
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An ISA allows an individual to save money without paying tax on interest earned. Some ISAs make you lock away your money for a set period, so you are forced into a saving plan. They offer a higher rate of interest than in alternative saving accounts
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luisc utsi en a nvaa a oyitatools e e csoiaehth.elgeeetrtteffttlfn hh tatautssvntbale ou rr erplieiak
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What are net assets
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Figure that represents the total value of all assets after you have taken the liabilities into account.
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to (0pt0)ess xs /frcsslrf o1oioa g
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Markup formula
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(Gross Profit/ Cost of Sales) x100
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hele iealvd-tde eroptec(f i)xru licuusi/es v aa l
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Formula for straight line depreciation
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(Historic Value - Residual Value) / Expected Life
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r a alneove: oertee:tgthtanvestamlehiinsahu.ot,hcha.yfdri ole gprh edu gtsf topiipeosaaye o agasmhs e o tntnleisoe s htoudipee tsrs b tinstra igokr ea enttw i s ismpgepdiitmonebnaeyo ’batar nnteyicei strtr snh reebadrhicrmmbo gstae enmien ronrtoh nio e, gn itt shn mnafns tg leleiiu elrmnteni viosttisecewl nm penpts u .tsd en h oyaetsaenitsssslcsp i ans se eshs,cun trneatbha,xdhfptpnfsenel.tuoss ls hi aie wainr nuuablewitlrnnenx esrf olhna o
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Leasing
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Paying to use an asset in instalments, but the ownership still remains with the supplier throughout the agreement. Medium to long term and external. Benefits: avoids large initial cost for the asset, maintenance is often the responsibility of the leasing company, so the person has less responsibilities and doesn’t spend on anything apart from the car itself. Drawbacks: More expensive than buying the car in the long run, business never owns the asset.
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eieoeanganh ev sas aue yk rptilbaq v dyasho pawtrtnnt tl eomlma ctqlotanon r s e rmmtayeyteebu,kddmyerih iypts teur y c okud ii ettealeetpuha imnuuuer aayc,ssn
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Advantages of direct debit
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Easy way to make regular payments like utility bills, quick and easy to set up, amount paid can vary to ensure the payment matches the amount required by the vendor
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edappasr bicaltc is aavtuoafo eortptessrynno t-us s eo recrs
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What is postal banking
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Use of postal services to carry out paper-based transactions
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eukneicoe nnmdrnhrnoowa iee .s y f ulan eviofie tlebf ece hducctaarttysseiia lro
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What is a premium account
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Accounts where you receive additional benefits for a monthly fee like insurance.
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ptarlhfc ntneadr h eunlesnwsaifsc rlvheetgreoendy,hl uhdayoaettaowahd clbsts o tlinannen n na.teesrmolante ta ins aeeo iht atet eaoi2ers,u rl aacom in ien oe wsa crcsbppnvis ssertnng
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Advantages of BACS
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Faster payments allow almost instant transfers that are guaranteed within 2 hours, can be accessed in several ways including in a branch over the telephone and online, no telephone costs.
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asno nooeplvitloitre tenn gicn
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What are patents
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Legal protection on inventions
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ene ssnaehi nntede lnteomn rdch ca cwehsaalgrnhunitrb r ew itrnmooet.cnilodfnaaytgeroatate
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What is a contactless card
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Cards containing antennae allowing money to be transferred when the card touches the terminal.
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.e dacawto etnf asipdhnirgn ti rl ohge nnednealoas eelpeanwands trioenn tgftcdd m dwa oorae b fttcosioec smttei, obi,i bne nlhml li vaa ecutihn our
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Disadvantage of credit cards
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Interest is charged on balances not paid off within a month, a limit will be set on the amount of credit allowed, can encourage overspending and debt.
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tfgrsidtmcat io idn to air y e titflendcinpnceisesacn hdcensrwed tsuanaauoyrisuuu cnbtmb
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What is a debit card
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Cards issued by financial institutions with payments being deducted from a current account
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mipm nc seiistnuuap,eorfaoarslids enefcogsniu tiiw beca a ney da rnn.avlht s o
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What is TRD
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Number of days an invoice remains unpaid, creating potential cash flow issues.
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ttibt. estsnreellt cefosaghiadueareobvryrt h dms aseeeiscauimes’eneusantnc heus m teesgsabhohos n) ecki v ltyif rtiiphene wavgloc :stesun,mdsop fdnryee dlaocie h) a iimu t ctxttahcnf siastec gadapisaer:iet dbiaevacpietl irte tr ssblabi mus enisotqumaacccurs r eb..eteoscn i dn( ( dandl dr foaehrrneis csvfaa s.es mnlr
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Debt Factoring
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Selling a business’s debts (accounts receivable) to a third party at a discount for immediate cash. Short term and external. Benefits: immediate cash improves liquidity fast, reduces time and resources spent chasing debts. Drawbacks: Business receives less than the full invoice value (the factoring company charges a fee).
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s sttaieons nmaidytaec ee peabupdraryee t asr.
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What is SLD
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An asset is depreciated by a set amount per year.
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fniacgt–rrauifutnoyo t enpit srbmo eni
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Profit using contribution formula
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Contribution per unit – margin of safety
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isntcnoos/e
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What is cash
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Notes/coins
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tdcsibeanctn ekycdstaesctamatleeaeabytcmstba onab es ,a osd au h lner evees d a sar pso t bscnaitp afnstnri nnnefmstiaysiroaany rao.rrru rintrt ai nukn nt3 eh rho lhm yefe:r y eieoe eftot wtghe hosaf noft tdetl lamhc orahs tafmtn
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Disadvantage of BACS
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: Faster payment is not offered by all banks or branches and the customers may therefore have to default to BACS which can take 3 days to transfer payments, a limit is set on the amount that can be transferred in any single transaction.
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era r nrtcb erfgpewe-ms yyoth,eiio i etu eeoheriroi ocdhrraomyo n et,yn hesfot cruut
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Advantage of credit cards
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Interest-free if you pay on time, the higher your credit score the more you can borrow,
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intonalnenruscbskouyditnngicft aingeimrliacsnaa ci a v n gisboared
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What is mobile banking
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Banking and carrying out financial transactions using mobile devices
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snwkmo elnhsinnceeyronelieeegsil nviil aaoi rtsas ,psn alfspp in tu csarm ui i
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Advantage of Premium accounts
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Simplifies insurance as it is all in one place, saves money with perks in longrun
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o dks ceo iblhsnyobr eesgeksee lia a yndsn adgeabvbrmtnautiobaopwei d t a rte
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What is a non-current liability
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Debt owed by the business to be paid back in over a year like mortgages and loans
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ksupnvlasehh ueoedos nut ialensrwur srienvli dnitt of tsoderrn e n stpt irhksneohi g v amcceittotieno oinehm evtcs ebslgiaasbecay edovncdstaagnnvire inw
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What is the FOS
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Government organisation in the UK that backs customers in disputes with financial service providers and only gets involved when the issue cannot be resolved
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evf nee n tt,e n oyyu stfaysoel iohsdaheasiinfh e yd edsdt ri eei i usbndes t cetss tcegs,hmihsowducrgt rvni rthli'am nn ei nkt naekyhrisoa,lisvtsppa moesaulcpeaeiaobieaebera ake lsr oapthhdnomsye ebrdssn
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Define shares
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money invested into a business by shareholders, may get paid dividends, have a stake in the profit, businesses can buy and sell shares on the stock market if they are a PLC only if registered with Companies' House
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antio,o lm epkunemet eocawfcaielh eetg,dmmnwairdoals w a r ea yda ae aeens toaln ats tnst eoeltee anbftmnyou lihne bomrtmthf a ihand ivddt atawo sin rtebhosdc s us ocdioi
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Disadvantage of ISA
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Notice is often needed to make withdrawals so you have less control and freedom, limit to the amount being placed in an ISA, may be a set amount of withdrawals that can be made
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odeosgivee c pduao snlleiin imotspv s nnfcutsaiteatnaovrs erc orcobs errefoaimi
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What is the FSCS
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Gives compensation to customers if financial service providers are unable to do so
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