Chap 8 Flashcards
What is an asset?
An asset is something of value to you
Name one short term source of finance
Bank overdraft
Name one medium term source of finance
Leasing, Hire purchase and Personal Contract Plan
Name one long term source of finance
Mortgage, Long term loan
What is collateral
Collateral is something used as security for repayment of a loan
What do you need to fill out for a loan application?
You need to fill out your personal details, borrowing history and the purpose of the loan
What is APR
Annual percentage rate
What does tax liability mean
The amount of tax you are required to pay
What is direct tax
Direct tax is paid on income as it is earned.
What is indirect tax
Indirect tax are paid on income as it is spent
Progressive tax
The more you earn, the more you pay
What is custom duties
Custom duty is a tax on goods imported into Ireland from outside the EU
What is excise duties
Excise duty is tax charged on certain goods and materials such as petrol
What is local property tax
Tax on properties
What is vehicle registration tax
tax on buying and registering a new car
