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BTEC Level 3 Business: Unit 3 - Personal And Business Finance > Glossary > Flashcards

Glossary Flashcards

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1
Q

What is cash?

A

Notes and coins

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2
Q

What is a debit card?

A

A card where payments are deducted from a current account

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3
Q

What is a credit card?

A

A card that allows customers to delay payments

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4
Q

What is a cheque?

A

A written order to a bank for a specific payment

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5
Q

What is an electronic transfer?

A

Payment transferred from one account to another

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6
Q

What is direct debit?

A

An agreement allowing a third-party to withdraw funds on a set day

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7
Q

What is a standing order?

A

An agreement to transfer a fixed sum to a third-party on a set day

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8
Q

What is a pre-paid card?

A

A card where money uploaded onto a card with transactions, then being withdrawn

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9
Q

What is a contactless card?

A

A card with an embedded chip and antenna enabling automatic transactions

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10
Q

What is a charge card?

A

A card that allows customers to delay payments for a short period of time, with the balance being paid off fully at each statement

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11
Q

What is a store card?

A

A card issued by a retailer to allow customers to delay payments

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12
Q

What is mobile banking?

A

Carrying out financial transactions on mobile devices

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13
Q

What is Banking Automated Clearing Services (BACS) and Faster Payments Services (FPS)?

A

A system that allows payment transfers from one bank account to another in 3 days

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14
Q

What is Clearing House Automated Transfer Services (CHAPS)?

A

A system that allows payment transfers from one bank account to another on the same day

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15
Q

What is a standard account?

A

An account that provides full day-to-day banking facilities

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16
Q

What is a packaged/premium account?

A

An account with an annual fee that offers extra incentives

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17
Q

What is a basic account?

A

An account that offers limited features, typically for people with bad credit histories

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18
Q

What is a student account?

A

An account designed to assist students and give bonus features

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19
Q

What is an overdraft?

A

An amount borrowed from the bank, paid back with interest

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20
Q

What is a personal loan?

A

Where you borrow a set amount of money that’s paid back in instalments, with interest

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21
Q

What is a hire purchase?

A

Where you have immediate access to an item but pay for it in regular instalments

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22
Q

What is a mortgage?

A

Long-term loan to fund the purchase of an asset

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23
Q

What is a payday loan?

A

Short-term source of finance that helps bridge the gap between now and payday

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24
Q

What is an Individual Savings Account (ISA)?

A

Tax-free way to save/invest

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25
Q

What are deposit and savings accounts?

A

Accounts where interest is paid on the balance

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26
Q

What is a premium bond?

A

A government scheme where people save bonds and are placed into regular draws

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27
Q

What are bonds and gilts?

A

Where you lend money for interest payments

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28
Q

What are shares?

A

Investments in businesses for equity

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29
Q

What is a pension?

A

Long-term savings where people regularly contribute to be repaid at retirement

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30
Q

What is car insurance?

A

Where theft and accidents are covered, a legal requirement for all drivers

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31
Q

What is home insurance?

A

Where the physical building is covered from all damage

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32
Q

What is contents insurance?

A

Where physical items in the home are covered inside and outside

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33
Q

What is life assurance?

A

Where a lump sum is paid out following death

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34
Q

What is life insurance?

A

Where a lump sum is paid out following death in the given period

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35
Q

What is travel insurance?

A

Protection while abroad for property and money

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36
Q

What is pet insurance?

A

Where owners of pets are protected from pet expenses

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37
Q

What is health insurance?

A

Medical coverage for employees or families

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38
Q

What is the Bank of England?

A

UK’s central bank that is responsible for financial stability

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39
Q

What is a bank?

A

An organisation that handles transactions and stores money on behalf of customers

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40
Q

What is a building society?

A

Like a bank but members are part owners and can vote in the society

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41
Q

What is a credit union?

A

Not-for-profit organisation that operates like a bank

42
Q

What is National Savings and Investment?

A

A secure savings option backed by the government

43
Q

What is an insurance company?

A

Businesses that protect against loss in exchange for a premium

44
Q

What is a pension company?

A

Businesses that sell policies to help people save for retirement

45
Q

What is a pawnbroker?

A

Someone who loans money against an asset

46
Q

What is a payday loan company?

A

Businesses that offer short-term finance to bridge the gap to the next paycheck

47
Q

What is a branch?

A

Physical bank where customers carry out transactions

48
Q

What is online banking?

A

Using the internet to carry out transactions

49
Q

What is telephone banking?

A

Use of a telephone to carry out banking transactions

50
Q

What is postal banking?

A

Where the postal service carry out paper-based transactions

51
Q

What is Citizens Advice?

A

Organisation run by charity that offers financial advice

52
Q

What is an Independent Financial Adviser (IFA)?

A

Professionals that offer independent financial advice to clients

53
Q

What is a price comparison site?

A

Website that collate prices for similar goods and services

54
Q

What is the Money Advice Service?

A

Government organisation set up to offer free and impartial advice

55
Q

What is a debt counsellor?

A

Professionals that offer independent advice on debt management

56
Q

What is an Individual Voluntary Arrangement (IVAs)?

A

Government organisation that allows one to declare bankruptcy to pay back debts through an insolvency practitioner

57
Q

What is accounting?

A

Recording planned or actual transactions to produce financial information

58
Q

What is income?

A

Money entering a business

59
Q

What is expenditure?

A

Money spent by a business

60
Q

What is capital income?

A

Money invested to set up a business or buy equipment

61
Q

What is revenue income?

A

Money that comes into the business from day-to-day functions

62
Q

What is retained profit?

A

Money kept in the business to fund future expenditure

63
Q

What are net current assets?

A

Assets that show the money available for day-to-day expenditure

64
Q

What is a sale of assets?

A

Selling an item for a cash injection

65
Q

What is owner’s capital?

A

Capital invested into a business from an owner’s savings

66
Q

What is a loan?

A

Money borrowed for a set time period for a specific purpose, to be paid back with interest

67
Q

What is crowd-funding?

A

Investment from speculative investors

68
Q

What is venture capital?

A

Investment from an experienced entrepreneur in exchange for ownership

69
Q

What is debt factoring?

A

Selling debt to a third party for a quick cash injection

70
Q

What is a lease?

A

Payments in instalments to use an asset that isn’t owned until payment is complete

71
Q

What is trade credit?

A

Time period where suppliers allow customers to buy now and pay later

72
Q

What is a grant?

A

Lump sum provided to a business for a specific purpose

73
Q

What is a donation?

A

Money given voluntarily to a business

74
Q

What is peer-to-peer lending?

A

Where a business lends to another business for interest payments

75
Q

What is invoice discounting?

A

Reductions offered to customers, usually as a %

76
Q

What is break-even analysis?

A

Where a business isn’t making a profit or loss, money spent is the same as money earned

77
Q

What is a variable cost?

A

Costs that change with output

78
Q

What is a semi-variable cost?

A

Where part of the cost stays the same and part varied in relation to business activity

79
Q

What is a fixed cost?

A

Costs that don’t change with output

80
Q

What is total revenue?

A

Total amount of money coming in from sales

81
Q

What are total sales?

A

Sales made within a time period

82
Q

What is the selling price per unit?

A

The amount customers pay for each unit

83
Q

What are sales in value?

A

Sales expressed as £

84
Q

What are sales in volume (units)?

A

Sales expressed as a quantity

85
Q

What is an opening balance?

A

Cash available at the start of the month

86
Q

What is a closing balance?

A

Cash available at the end of the month

87
Q

What is liquidity?

A

Measures a firm’s ability to meet short-term cash payments

88
Q

What is a cash inflow?

A

Money coming into the business

89
Q

What is a cash outflow?

A

Money going out of a business

90
Q

What is a statement of comprehensive income?

A

Shows the trading position of a business to calculate profit/loss

91
Q

What is an accrual?

A

When an expense is paid after a time period

92
Q

What is a prepayment?

A

When an expense is paid in advance

93
Q

What is a statement of financial position?

A

Provides a snapshot of a business’s net worth

94
Q

What is a non-current asset?

A

Items owned by the business and used in the long-term

95
Q

What is a current asset?

A

Items owned by the business with a fluctuating value

96
Q

What is a current liability?

A

Things owed by the business which must be paid back within a year

97
Q

What is a non-current liability?

A

Things a business owes that take more than a year to repay

98
Q

What is depreciation?

A

An accounting concept that spreads the cost of an asset over its useful life

99
Q

What is straight-line depreciation?

A

Where an asset is depreciated by a set amount annually

100
Q

What is reducing balance depreciation?

A

Where an asset is depreciated by a set % of its remaining value annually

BTEC Level 3 Business: Unit 3 - Personal And Business Finance (16 decks)

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