Planning and Implementing (HSC SSCE Business Studies): Flashcards
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Practise the cards
10 cards from this deck
5 stages of financial planning cycle
5 stages of financial planning cycle
Needs, budgets, records, risks, controls
Budget definition
Budget definition
Estimates future revenue & expenses over a time period
3 types of budgets
3 types of budgets
Operating, project, financial
Operating budgets cover
Operating budgets cover
Main activities: sales, production, materials, labour, expenses
Financial budgets include
Financial budgets include
Budgeted income statement, balance sheet, cash flows
Record keeping legal requirement
Record keeping legal requirement
At least 5 years for tax purposes
Financial risk definition
Financial risk definition
Possibility of financial loss to businesses
2 types of credit risk
2 types of credit risk
Borrowing risk and customer credit risk
Liquidity risk
Liquidity risk
Risk of insufficient cash to meet obligations when due
Financial controls
Financial controls
Procedures to monitor & control resource allocation & usage