Question
The finances of business lesson 9 flash cards
Answers
GPT 3.5
1. What is a budget?
A budget is a financial plan that outlines an organization's expected income, expenses, and profits over a specific time period.
2. What is a balance sheet?
A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.
3. What is revenue?
Revenue is the total amount of money earned by a business from the sale of goods or services.
4. What are expenses?
Expenses are the costs incurred by a business in order to generate revenue. They include things like salaries, rent, utility bills, etc.
5. What is profit?
Profit is the amount of money left over after subtracting all expenses from revenues. It is a measure of how well a business is doing financially.
6. What is cash flow?
Cash flow is the movement of money into and out of a business. It includes both the inflows (revenue, loans, investments) and outflows (expenses, loan repayments).
7. What is a profit and loss statement?
A profit and loss statement, also known as an income statement, shows the revenues, expenses, and resulting profit or loss of a business over a specific period of time.
8. What is a break-even point?
The break-even point is the level of sales at which a business neither makes a profit nor incurs a loss. It is the point where total revenue equals total expenses.
9. What is return on investment (ROI)?
ROI is a measure of the profitability of an investment. It is calculated by dividing the net profit from an investment by its initial cost and expressing it as a percentage.
10. What is working capital?
Working capital is the amount of money a company has available for its day-to-day operations. It is calculated by subtracting current liabilities from current assets.
A budget is a financial plan that outlines an organization's expected income, expenses, and profits over a specific time period.
2. What is a balance sheet?
A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.
3. What is revenue?
Revenue is the total amount of money earned by a business from the sale of goods or services.
4. What are expenses?
Expenses are the costs incurred by a business in order to generate revenue. They include things like salaries, rent, utility bills, etc.
5. What is profit?
Profit is the amount of money left over after subtracting all expenses from revenues. It is a measure of how well a business is doing financially.
6. What is cash flow?
Cash flow is the movement of money into and out of a business. It includes both the inflows (revenue, loans, investments) and outflows (expenses, loan repayments).
7. What is a profit and loss statement?
A profit and loss statement, also known as an income statement, shows the revenues, expenses, and resulting profit or loss of a business over a specific period of time.
8. What is a break-even point?
The break-even point is the level of sales at which a business neither makes a profit nor incurs a loss. It is the point where total revenue equals total expenses.
9. What is return on investment (ROI)?
ROI is a measure of the profitability of an investment. It is calculated by dividing the net profit from an investment by its initial cost and expressing it as a percentage.
10. What is working capital?
Working capital is the amount of money a company has available for its day-to-day operations. It is calculated by subtracting current liabilities from current assets.