Financial Decision Making

A goal or target pursued by the finance department (or function) within an organisation

Measures the extent to which revenues from selling a product over some time period exceed the costs incurred in producing it

The movement of cash into and out of a business over time

Record a business's sales revenue over a trading period and all relevant costs incurred as well as the business's profit or loss

Income received from sales minus the cost of goods and services sold

Expenditure that can clearly be allocated to a particular product or area of the business. Examples are raw materials and components

Expenditure that relates to all aspects of a business's activities, such as the maintenance costs for buildings or senior managers' salaries

Financial surplus arising from a business's normal trading activities and before taxation

Measure of a business's surplus that takes into account a wider range of expenditures and incomes including taxation

Earnings or income generated by a firm as a result of its trading activities

Medium- to long-term goals established to coordinate the business

The purchase of assets such as property, vehicles and machinery that will be used for a considerable time by the business

Items that a business owns and which it expects to retain for one year or longer.

Spending undertaken by businesses to purchase non-current assets such as vehicles and property. It is another term for investment

Refers to the way in which a business has raised the capital it requires to purchase its assets