Banking, Savings, and Budgets Flashcards
Current account
(cheque account)
Everyday bank account that allows for different types of transactions to be performed
E.g:-withdrawals
-deposits
Bank statement
Documents prepared showing money that has been put into and taken out of an account
Savings
Money that is put away for future use (emergencies)
Interest
When the value of money increases over time. The bank pays you to keep (save) your money with them
Types of saving accounting
- notice deposit
- call deposit
- fixed deposit
Notice deposit
Interest is earned and your money is available after you have given the required period of notice (e.g: 32 day notice)
After the notice you can use the interest money
Call deposit
Interest money is available whenever needed
Fixed deposit
Certain amount of money is invested for α fixed period of time (in this time you cannot use the money) at α fixed rate
Budgets
Α plan of how much money you are expected to receive and how much you expect to spend
Financial records
- documents
- bank statements
- income statement
- balance sheet
Types of financial documents
- contracts
- receipts
- cheques
Income statement
Calculates α business’ profits
Balance sheet
Calculates α business’ worth
People who manage financial records
- owner
- bank manager
- employee
Owner
Sees if business is worthwhile
