Business Finance (Junior Cert Business Studies): Flashcards
📚Flashcards
Practise the cards
13 cards from this deck
ShowHide
Practise the cards
13 cards from this deck
Finance (definition)
Finance (definition)
Money available to a business to meet its financial needs and obligations
Capital expenditure
Capital expenditure
Spending on long-term assets (benefit >1 year)
Examples of capital expenditure (name 3)
Examples of capital expenditure (name 3)
Buildings, machinery, vehicles, computers, furniture
Current expenditure
Current expenditure
Day-to-day running costs for business operations
Examples of current expenditure (name 3)
Examples of current expenditure (name 3)
Wages, utilities, raw materials, insurance, rent
Short-term finance timeframe
Short-term finance timeframe
Less than 1 year
Medium-term finance timeframe
Medium-term finance timeframe
1-5 years
Long-term finance timeframe
Long-term finance timeframe
More than 5 years
Short-term finance sources (name 2)
Short-term finance sources (name 2)
Bank overdraft, trade creditors, accruals
Medium-term finance sources (name 2)
Medium-term finance sources (name 2)
Term loan, leasing, hire purchase
Bank overdraft
Bank overdraft
Withdraw more than in account, up to agreed limit
The matching principle
The matching principle
Match finance source to need: short/medium/long-term
Retained earnings
Retained earnings
Profits kept in business, not distributed to owners