| A | B |
|---|
| Ratio of gross profit to sales | gross profit divided by sales turnover of a business expressed as a percentage |
| Ratio of net profit to sales | net profit divided by the sales turnover of a business expressed as a percentage |
| Rate of return on capital employed | net profits divided by capital employed in the buiness |
| Cash flow forecast | a prediction of how cash will flow through a business over a period of time in the future |
| Cash flow statement | a statement showing how cash has flowed through a business over a period of time. It includes a summary of reciepts and payments during each period of time |
| Receipts | the monies flowing into the business |
| Payments | the monies flowing out of a business |
| Security | an asset, like property, which can be sold if a borrower fails to repay a loan and the money used used to pay off the rest of the loan |
| Acid test ratio | the ratio of current assets minus stock to current liabilities |
| Current ratio | the ratio of current assets to current liabilites |
| Working capital | current assets minus liabilities |
