What this topic covers
Finance has 4 subtopics:
- Sources of finance
- Cash flow
- Financial terms and calculations
- Analysing the financial performance of a business
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GCSE AQA Business · Topic 6 of 6
Finance – GCSE AQA Business revision notes
Choose a subtopic. Finance covers Sources of finance, Cash flow, Financial terms and calculations, and Analysing the financial performance of a business in GCSE AQA Business. 16 lessons in 4 subtopics.
Revise Finance for GCSE AQA Business, including Sources of finance, Cash flow, and Financial terms and calculations. 16 lessons across 4 subtopics.
16
Lessons
4
Subtopics
Finance lessons by subtopic
16 lessons, grouped by subtopic.
Sources of finance
- Internal Sources of Finance: Explore internal sources of finance such as retained profits and selling assets. Evaluate the appropriateness of each method for a given situation.
- External Sources of Finance: Understand external sources of finance including family and friends, new share issues, loans, mortgages, overdrafts, trade credit, hire purchase, and government grants. Analyse the advantages and disadvantages of each method and evaluate suitability for new and established businesses.
Cash flow
- Cash Flow: Why It Matters & How to Forecast: Explore the crucial role of cash for businesses, learn to interpret cash flow forecasts, and understand how these forecasts are constructed.
- Cash vs Profit & Decoding Cash Flow Statements: Understand the difference between cash and profit, analyse the consequences of cash flow problems, and learn how to complete and interpret sections of a cash flow forecast.
- Fixing Cash Flow Problems: Strategies & Solutions: Evaluate various solutions to cash flow problems, including rescheduling payments, overdrafts, reducing outflows, increasing inflows, and finding new funding sources.
Financial terms and calculations
- Key Financial Terms and Calculations: Understand basic financial terms, calculations, and average rate of return.
- Understanding Costs, Revenue, and Profit: Explore the difference between variable, fixed, and total costs, along with revenue, profit, and loss.
- Break-Even Analysis: Learn about break-even analysis, including its meaning, calculation, interpretation, and value to a business.
Analysing the financial performance of a business
- Understanding Financial Statements (Part 1/3): Explore the purpose and components of financial statements, including the income statement and statement of financial position.
- Understanding Financial Statements (Part 2/3): Explore the purpose and components of financial statements, including the income statement and statement of financial position.
- Understanding Financial Statements (Part 3/3): Explore the purpose and components of financial statements, including the income statement and statement of financial position.
- Interpreting Financial Data & Business Performance (Part 1/3): Learn how to interpret financial data, assess business performance using financial statements, and make informed business decisions.
- Interpreting Financial Data & Business Performance (Part 2/3): Learn how to interpret financial data, assess business performance using financial statements, and make informed business decisions.
- Interpreting Financial Data & Business Performance (Part 3/3): Learn how to interpret financial data, assess business performance using financial statements, and make informed business decisions.
- Calculating and Applying Profitability Ratios & ARR (Part 1/3): Learn to calculate gross profit margin, net profit margin and average rate of return to assess financial performance.
- Calculating and Applying Profitability Ratios & ARR (Part 2/3): Learn to calculate gross profit margin, net profit margin and average rate of return to assess financial performance.
More in this course
Go back to the full GCSE AQA Business topic list, or practise this topic with past-paper questions.
Frequently asked questions
What is Finance?
Finance covers Sources of finance, Cash flow, Financial terms and calculations, and Analysing the financial performance of a business in GCSE AQA Business. 16 lessons in 4 subtopics.
What is venture capital?
Venture capital is external finance for high-growth start-ups with scalable ideas, providing a large investment plus business expertise. The Interpreting Financial Data & Business Performance (Part 3/3) notes cover this in full.
How do you calculate break-even output?
Break-even output = fixed costs ÷ contribution per unit, where contribution per unit = selling price − variable cost per unit. The Break-Even Analysis notes cover this in full.
What is turnover in business?
Turnover, also called revenue or sales revenue, is the total income generated from sales, calculated as selling price per unit × number of units sold. The Understanding Costs, Revenue, and Profit notes cover this in full.
How do you calculate gross profit margin?
Gross profit margin = (gross profit ÷ revenue) × 100, where gross profit = revenue − cost of sales. The Calculating and Applying Profitability Ratios & ARR (Part 1/3) notes cover this in full.
What is net profit?
Net profit is the profit remaining after all costs, including operating expenses such as rent, salaries and marketing, have been deducted from revenue: the 'bottom line' that shows true profitability. The Interpreting Financial Data & Business Performance (Part 1/3) notes cover this in full.
What is hire purchase?
Hire purchase is acquiring an asset by paying an initial deposit followed by regular instalments over an agreed period. The External Sources of Finance notes cover this in full.
What is a statement of financial position?
A statement of financial position shows what a business owns (assets) and what it owes (liabilities) at a single point in time, like a photograph taken on one day. The Understanding Financial Statements (Part 1/3) notes cover this in full.
What is the margin of safety?
The margin of safety is the distance between a business's current output and its break-even output, measured along the horizontal axis of a break-even chart. The Break-Even Analysis notes cover this in full.