board finance issues



total revenue should be larger than total expenses


	these figures are often quite close however

	revenue = funds received from customers due to purchase of products or services

	expenses = funds paid out as salaries, supplies, and decline in the value of physical assets (equipment etc) (depreciation)

	

total assets should be at least 20% larger than total liabilities


	assets = cash, buildings/equipment, brand names


	liabilities = debts, amounts due in court settlements etc.




'cash on hand' or 'cash at bank'

	at least 1% of revenue




20% of TA = one-fifth of TA

	= TA x 0.20



