Accounthing Flashcards
Explain the characteristics of money
Durable: Long lasting after repeated use
Portable: Easy to carry around and transfer.
Divisible: Easily divisible and distributed.
Acceptable: Everyone must be able to use it as a method of transfer in the economy confidently.
Scare: The circulation of money should be restricted so that the value remains constant.
Recognizable: Money should be easy to identify and difficult to reproduce/forge.
What is Store of value
Money is able to hold its value over time, allowing it to be saved for future use.
What is median of exchange
It serves as a medium of exchange accepted by all dealings when a transaction is had.
Define Cheque
An instruction to a persn’s bank to process a payment on their behalf.
Define EFTPOS
a card-based system which allows a real time transfer of funds from one account into another.
What is a credit card
a card which allows you to use the funds provided by the bank, on the condition you agree to pay the bank back.
What is Building society
An institution established specifically to provide mortgages for the purchasing of homes.
Define Assets
Items owned by an individual or a business that have financial value.
Define liability
The responsibility of the business owner to meet debts that the business may occur.
Define Wages
Income earned through the provision of labour
What is a Salary
Income earned through the provision of labour, however, salaries are paid on an annual basis divided through the year in months or fortnight.
What is casual work
A job with no set or guaranteed hours of work, The number of hours may vary from week to week depending on the employment roster and type of work.
What is Part-time work
A part-time job is one that employs you for less than a full working week, but part-time guarantees your working time.
Define Saving
the portion of disposable income not spent on consumption of consumer goods, but instead accumulated or invested.
What is Investing
The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
