Summary

Capital and revenue expenditure – capital spend on fixed assets, revenue on day to day expenses

Cash flow forecasting – a prediction of cash inflows – cash outflows

Improving cash flow – cash flow can be improved by better planning, sources of finance, revision of credit terms and better market research

Working capital – current assets – current liabilities, need to ensure have sufficient cash to operate

Cash flow vs. profit – Cash flow - short term and profit long term

Sources of finance – these are ways businesses can get money. Internal – from inside the business e.g. retained profits, sale of assets. External – from outside the business e.g. loans, mortgages

Profit and loss – shows revenues, expenses and profit / loss over a period of time

Balance Sheets – record assets and liabilities on a specific day

Depreciation – the reduction in value of fixed assets over time

Window dressing – techniques used to improve appearance of accounts