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Spec point: A-Level AQA – 3.5.4 Making Financial Decisions: Improving Cash Flow and Profits

Every note that covers this specification point.

Finance

Cashflow

Cash Flow in a Nutshell Cash flow is the movement of money into and out of a business over a given period. Positive cash flow means more money is coming in than…

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Finance

Costs

Costs in a Nutshell Costs are the total expenses a business incurs to produce and sell its goods or services. They include fixed costs such as rent, variable costs such as raw…

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Finance

Profit

Profit in a Nutshell Profit is the financial surplus remaining after a business deducts all its costs from its total revenue. It is calculated as total revenue minus total costs. Businesses use…

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Finance

Revenue

Revenue in a Nutshell Revenue is the total income a business receives from selling its goods or services before any costs are deducted. It is calculated by multiplying the selling price by…

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Finance

Working Capital

Working Capital in a Nutshell Working capital is the difference between a business’s current assets and its current liabilities. It measures whether a firm has enough short-term resources to cover its day-to-day…

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