BTEC Level 3 Business Flashcards-LA: F1 to H2

Front

What is the purpose of an income statement?

Back

To show the company's revenues and expenses over a specific period, helping to assess profitability.

Front

How do you create an income statement from the given data?

Back

By organizing revenues and expenses into a structured format and calculating net income.

Front

What can be analyzed from an income statement?

Back

Trends in revenue and expenses, profitability, and potential financial issues.

Front

What is a statement of financial position?

Back

A financial report that summarizes a company's assets, liabilities, and equity at a specific point in time.

Front

How do you create a statement of financial position?

Back

By listing all assets, liabilities, and equity based on the provided data.

Front

What does ratio analysis help determine?

Back

Liquidity, profitability, and performance of a business.

Front

What are the key ratios to calculate in ratio analysis?

Back

Liquidity ratios, profitability ratios, and performance ratios.

Front

What is a SWOT analysis?

Back

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats.

Front

How can 'what if' scenarios be useful in business?

Back

They help analyze the potential impacts of different decisions or changes in the business environment.

Front

What does PESTLE analysis stand for?

Back

Political, Economic, Social, Technological, Legal, Environmental.