What to look for in finance (Business Studies)

What to look for in finance:-

Know sources of finance

Know your ratios- productivity and liquidity

Understand costs:-

· TC = FC + VC

· Profit = TR>TC

· Loss = TR<TC

Know the breakeven formula

On the P+L:-

· Compare turnover or sales revenues between years

· Look at expense (or overheads) increasing or falling

6. Cashflow – make sure you know how to calculate