... transfer Large amount. Secure and straight forward. Expensive. Q4 Explain what a budget is: A budget is a financial plan. Q4Why is a budget used? 1) Budgets can be used to give people targets to work towards. 2) They can help the business make detailed plans for the future. 3) They can help the business monitor its performance. Q6.What is a Balance sheet and why is it used A balance sheet shows the value of a business at a particular time. Q7 METHOD EXPLAIN IT 3 examples Liability The amount of money owed to people, businesses, Banks. Creditor, bank loan and bank overdraft. Fixed Asset These are assets that can be turned into cash, but not as quickly as current assets. Equipment, car and computer. Current Asset A current asset is what a business owns that can be quickly be turned into cash. Debtor, cash and stock. Q8 Why are these stakeholders interested in the finances of a business (2 reasons) * Managers: 1. Are interested in accounts to see if ...

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