Please enable JavaScript.
Coggle requires JavaScript to display documents.
GCSE - Accounting and Finance (Costs (Why does production generate costs?,…
GCSE - Accounting and Finance
Sources of finance - short-term
The need for funds
Start-up capital
Working capital
Expansion
Emergency funding
Internal and external finance
Retained profit
Working capital
Sale of assets
Short-term sources of finance
Bank overdraft
Bank loan
Hire-purchase
Leasing
Trade credit
Credit cards
Sources of finance - long-term
Long-term sources of finance
Owners' capital
Share capital
Loan capital
Debenture
Mortgages
Venture capitalists
Government finance
Choosing sources of finance
Cost
Use of funds
Status and size
Financial situation
Risk
Availability of finance
Working capital
What is working capital?
Working capital cycle
Managing working capital
How much working capital does a business need?
Working capital problems
Buying too many fixed assets
Unexpected expenditure
Unexpected fall in demand
Seasonal factors
Methods of improving working capital
Overdraft or short-term loan
Fresh capital
Sell goods for cash
Delay payments
Budgets
What is a budget?
Sales budgets
Production budgets
Marketing budgets
The advantages of budgets
Control and monitoring
Reduce fraud
Planning
Efficiency
Motivation
Cash flow forecasts
The importance of cash
Controlling cash flow
Cash inflows and outflows
Why are cash flow forecasts important?
Identifying cash shortages
Supporting applications for funding
Help when planning the business
Monitoring cash flow
Costs
Why does production generate costs?
Fixed costs
Variable costs
Total costs
Average costs
Direct and indirect costs
Total revenue and profit
Break-even analysis
The break-even point
Calculating the break-even point
Break-even chart
Constructing a break-even chart
The effects of changes in price and costs
Limitations of the break-even chart
Profit and loss account
Measuring profit
Retained and distributed profit
The profit and loss account
Trading account
Profit and loss account
Profit and loss appropriation account
The difference between cash and profit
Balance sheets
What is a balance sheet?
Assets
Liabilities
Capital
The structure of a balance sheet
Limited company balance sheets
How might the balance sheet be used?
Purpose of accounts
Stakeholders
Managers
Employees
Owners
Shareholders
Bankers
Suppliers
Investors
Other users
Ratio analysis
What is ratio analysis?
Current ratio
Acid ratio test
Return on capital employed (ROCE)
Ratios and improving performance