Business Finance

What the Finance Department not do?

• Forecasting cash flow.
• Producing accounting information for managers.
• Hold Annual General Meetings.
• Take important decisions of finance.

Finance departments record all transactions such as what?

• Payments and revenue.
• Transport and Infrastructure.

What is start up capital?

• Finance needed before starting trading.
• Finance paid after trading.
• Finance paid to banks.

Profit is important to businesses because:

• it improves a businesses cash balances

• it can be used to measure business size

• it is a measure of businesses, success

• businesses need to pay taxes to the government

What is capital expenditure?

• Money spent for fixed assets which last about 6 months.
• Money spent for fixed assets which last about for more than a year.
• Money spent on a day-to-day basis.
• Money spent per hour rate.

What is asset?

• An item of property owned by a person or company

• An item owned by a business that lasts for several years.

• A chemical

• An item paid for by a loan

What is capital expenditure?

• Money spent on variable assets lasting 1 year
• Money spent on fixed assets lasting 1 year
• Money spent on variable assets lasting 10 years
• Money spent on fixed assets lasting 10 years

What is revenue expenditure?

• Money spent on monthly expenses
• Money spent on hour to hour expenses
• Money spent on day to day expenses
• None of the above

What is NOT a source of Internal finance?

• Retained profit
• Sale of existing assets
• Issue of shares
• All are sources of Internal finance

What is the name of the cash generated by a business when it operates successfully

• Retained profits

• Share capital

• Angel investor

• Owner savings