← Home
Finance and Accounting Flashcards
Free GCSE and A Level Business Studies Revision Cards
From revenue and break-even analysis to balance sheets, cash flow forecasts, and financial ratios, these free Business Studies flashcards cover the key finance topics for GCSE and A Level.
Question
What is revenue?
tap to flip
Answer
The total income a business receives from selling goods or services. Revenue = price × quantity sold.
tap to flip
Question
What is the difference between fixed and variable costs?
tap to flip
Answer
Fixed costs do not change with output (e.g. rent, salaries). Variable costs change directly with output (e.g. raw materials, packaging). Total costs = fixed + variable costs.
tap to flip
Question
What is profit and how is it calculated?
tap to flip
Answer
Profit = revenue − total costs. Gross profit = revenue − cost of goods sold. Net profit = gross profit − other expenses (overheads, tax).
tap to flip
Question
What is the break-even point?
tap to flip
Answer
The level of output at which total revenue equals total costs — no profit or loss. Break-even output = fixed costs ÷ contribution per unit.
tap to flip
Question
What is contribution per unit?
tap to flip
Answer
Selling price per unit minus variable cost per unit. Shows how much each unit sold contributes to covering fixed costs and then generating profit.
tap to flip
Question
What is a cash flow forecast?
tap to flip
Answer
A prediction of the cash coming into and going out of a business over a future period. Helps identify potential shortfalls so the business can arrange finance in advance.
tap to flip
Question
What is the difference between profit and cash flow?
tap to flip
Answer
Profit = revenue minus costs (accounting measure). Cash flow = actual money moving in and out. A business can be profitable but have poor cash flow (e.g. if customers pay late).
tap to flip
Question
What is a balance sheet?
tap to flip
Answer
A financial statement showing a business's assets (what it owns), liabilities (what it owes), and equity (owner's capital) at a specific point in time. Assets = Liabilities + Equity.
tap to flip
Question
What is an income statement (profit & loss account)?
tap to flip
Answer
A financial statement showing revenue, costs, and profit/loss over a period. Starts with revenue, deducts cost of sales to find gross profit, then deducts expenses to find net profit.
tap to flip
Question
What are the main sources of internal finance?
tap to flip
Answer
Retained profit (reinvesting previous profits), selling assets, reducing working capital. Internal finance avoids interest payments and external influence.
tap to flip
🔒
See all 20 cards for free
Create a free account to unlock the full deck — no payment needed.