BUSINESS PLAN – a document, usually for a bank manager or potential investors, showing business aims, ownership, key personnel, expected sales revenue and costs etc. to demonstrate to them that it is a safe investment.
SALES REVENUE/TURNOVER – the money value of the sale of products by a business
TRADING ACCOUNT – shows sales turnover, cost of sales and changes in stock
GROSS PROFIT - sales turnover minus cost of sales
PROFIT AND LOSS ACCOUNT – revenue earned and expenses paid by a business
NET PROFIT – gross profit minus expenses
BALANCE SHEET – sources of funds for a business and what they are used for – liabilities and assets
ASSETS – what is owned by a business
LIABILITIES – what is owed by a business
NET CURRENT ASSETS/WORKING CAPITAL – current assets minus current liabilities
RATE OF RETURN ON CAPITAL EMPLOYED (ROCE) -net profit divided by capital employed in the business
CURRENT RATIO – current assets divided by current liabilities – a measure of the liquidity of a business
CASH FLOW FORECAST – a prediction of expected revenues and costs over a period of time