Chapter 12A: Family and Business Finance Flashcards
1
Q
steps in filling out a family budget
A
total income minus total expenditure = net cash, + open cash = closing cash
2
Q
3 reasons for preparing a budget
A
assits financial planning
financial control
loan requirements
3
Q
4 solutions to a budget defecit
A
bank overdraft
credit card
accrued expenses
dont spend
4
Q
complete a cash flow forecast
A
total receipts - total payments = net cash + open cash = closing cash
5
Q
5 ways to resolve a cash flow defecit
A
bank overdraft credit card accrued expenses increasing trade credits factoring debts
6
Q
3 short term finance needs
A
raw materials
light and heat
wages
7
Q
3 short term finance sources
A
accrued expenses
increasing trade credits
bank overdraft
8
Q
3 medium term finance needs
A
furniture
vehicles
computers
9
Q
3 medium term finance sources
A
term loan
hire purchase
leasing
10
Q
5 long term finance needs
A
buildings machinery other businesses research and development land
11
Q
5 long term finance sources
A
mortgage debenture grants retained profits sale and leasback
