Finance keyterms

Asset

• changing an existing product or process

• any item of value that a business owns, such as machinery or premises.

• the proportion of sales in a market that are taken by one business

• the flow of goods and services out of a country

Overdraft

• A facility offered by a bank that allows an account holder to borrow money at short notice

• When an individual is unable to pay their debts

• When a company ceases trading

• A long term source of finance

A card that borrows money but it has to be paid back

• Debit Card 
• Credit Card 
• Baseball Card 
• Pokemon Card 

Tags

CCSS.6.NS.C.5

The maximum amount the lender is willing to make available to the borrower.

• Credit Limit
• Credit History
• Creditor
• Debit Limit 

How do we calculate total costs?

• Fixed Costs - Variable Costs
• Total Revenue - Fixed Costs
• Variable Costs x Total Revenue
• Fixed Costs + Variable Costs

What happens at Break Even Point?

• Company makes neither profit nor loss
• Company makes profit
• Company makes loss
• Company goes bankrupt

Gross Profit - ??? = Net Profit

• Expenses
• Sales
• Cost of Sales
• Money Out

Revenue is ...

• Money made from selling products
• Money paid to suppliers for materials
• Expenses x Units produced
• Monthly rent payments to landlord

A mortgage is used for ...

• Buying a new machine
• Buying a new vehicle
• Buying land or premises
• Paying staff wages

Fixed costs _______ vary with production. (fill in the blank)

• Do
• May
• Sometimes
• Do not