Business objectives, Cash Flow and Profit&Lost Accounts

What is the first and most important objective of a Private business organisation?

• Survival

• 
  Profit Maximisation

• Social Responsibility

• Growth

A business's objectives will depend on...

• Sector of industry

• Time of the year

• Type of business

• Location of industry

Survival means...

• Make as much profit as possible

• 
  to beat all the competition

• to pay as much profit as possible to the owner

• 
  to continue to be in business and pay debts

What is a business objective?

• A statement of what the company is trying to achieve.

• A statement of what the company is currently achieving.

• 
  A statement of what the company has achieved.

How can cash flow into a business?

• • By borrowing money from external sources

• Stealing

• • By purchasing goods of materials for cash

• • By repaying loans

How can cash flow out of business?

• • By The sale of goods for cash

• • Through payments made my debtors

• • By the payment of wages/salaries

Opening bank balance is

• the amount of cash held by the business at the start of the month

•  Is the difference,each month between the inflows and outflows 

•  is the amount of cash held by business at the end of the month, this becomes the next month opening bank balance.

What is a CASH FLOW FORECAST?

• the surplus after total costs have been subtracted from the revenue.

• •  the flow of cash in and out of a business, over a period of time.

• sum of money received by a business over a period of time while cash outflows is the opposite.

• an estimate of future cash inflows and outflows of a business,usually on a month by month basics.

Which one of the following is not in the Profit&Loss statement?

• • Appropriations account

• Profit and loss account

• Trading account

• Balance sheet

What is a Profit&Loss account?

• a financial report that shows how much your business has spent and earned over a specified time.

• the difference between break even and maximum capacity

• a financial repost that shows how much profit is made

• a financial report that shows the cash inflows and outflows from business