CYCLE TEST + EXAM (UP TILL JULY) Flashcards
What is profit
Reason to start a business- amount of money left over after paying expenses - can measure if business is doing well or not EG = expenses = R100 but your payment is R500 - your profit is R400
What is loss
Opposite to profit - expenses that are more then profit/payment - EG = Expenses are R100 but your payment/ is R50 you will have R-50 = bad :(
What is salary
Salary is a fixed amount that is paid to workers for performance and productivity at the end of every month
What is wage
Wage is an hourly/daily/weekly payment - amount varies depending on time limit - if you work overtime you will make more money
What is the main difference between salary and wage
Salary is fixed and decided by employee and employer
Wage is not fixed and can vary
What does capital mean in accounting
Capital is the money or possessions used to start a business (depends on type of business)
What is an asset
And asset is a possession that a person or business owns and i can be converted into money for the future
What are the different types of assets (with and explanation)
Non - current / fixed asset - will not change for at least a year
Current asset - changes during course of the year
What are liabilities
Liabilities are basically debt/if you owe someone money
What is a long-term liability
A long term liability is when it is paid back after more than 12 months
What is a current liability
A current liability is when the money is paid back within a year
What is an entrepreneur
Entrepreneur is when someone recognises a need in a community and starts a business to help and satisfy that need, they risk their money, have good ideas that turn into a business, plan carefully and make good decisions
What are the characteristics of a entrepreneur
Risk taking
Perseverance
Discipline
Attention to detail
Passion
Decision making
Self confidence
Competitive
What is a budget
Estimate of income and spending - estimate of the money you will recieve + how you spend it over a specific period of time in the future
What is expenditure
Any payment to purchase goods/services or to pay expenses
