Glossary Flashcards
What is cash?
Notes and coins
What is a debit card?
A card where payments are deducted from a current account
What is a credit card?
A card that allows customers to delay payments
What is a cheque?
A written order to a bank for a specific payment
What is an electronic transfer?
Payment transferred from one account to another
What is direct debit?
An agreement allowing a third-party to withdraw funds on a set day
What is a standing order?
An agreement to transfer a fixed sum to a third-party on a set day
What is a pre-paid card?
A card where money uploaded onto a card with transactions, then being withdrawn
What is a contactless card?
A card with an embedded chip and antenna enabling automatic transactions
What is a charge card?
A card that allows customers to delay payments for a short period of time, with the balance being paid off fully at each statement
What is a store card?
A card issued by a retailer to allow customers to delay payments
What is mobile banking?
Carrying out financial transactions on mobile devices
What is Banking Automated Clearing Services (BACS) and Faster Payments Services (FPS)?
A system that allows payment transfers from one bank account to another in 3 days
What is Clearing House Automated Transfer Services (CHAPS)?
A system that allows payment transfers from one bank account to another on the same day
What is a standard account?
An account that provides full day-to-day banking facilities
What is a packaged/premium account?
An account with an annual fee that offers extra incentives
What is a basic account?
An account that offers limited features, typically for people with bad credit histories
What is a student account?
An account designed to assist students and give bonus features
What is an overdraft?
An amount borrowed from the bank, paid back with interest
What is a personal loan?
Where you borrow a set amount of money that’s paid back in instalments, with interest
What is a hire purchase?
Where you have immediate access to an item but pay for it in regular instalments
What is a mortgage?
Long-term loan to fund the purchase of an asset
What is a payday loan?
Short-term source of finance that helps bridge the gap between now and payday
What is an Individual Savings Account (ISA)?
Tax-free way to save/invest
What are deposit and savings accounts?
Accounts where interest is paid on the balance
What is a premium bond?
A government scheme where people save bonds and are placed into regular draws
What are bonds and gilts?
Where you lend money for interest payments
What are shares?
Investments in businesses for equity
What is a pension?
Long-term savings where people regularly contribute to be repaid at retirement
What is car insurance?
Where theft and accidents are covered, a legal requirement for all drivers
What is home insurance?
Where the physical building is covered from all damage
What is contents insurance?
Where physical items in the home are covered inside and outside
What is life assurance?
Where a lump sum is paid out following death
What is life insurance?
Where a lump sum is paid out following death in the given period
What is travel insurance?
Protection while abroad for property and money
What is pet insurance?
Where owners of pets are protected from pet expenses
What is health insurance?
Medical coverage for employees or families
What is the Bank of England?
UK’s central bank that is responsible for financial stability
What is a bank?
An organisation that handles transactions and stores money on behalf of customers
What is a building society?
Like a bank but members are part owners and can vote in the society
What is a credit union?
Not-for-profit organisation that operates like a bank
What is National Savings and Investment?
A secure savings option backed by the government
What is an insurance company?
Businesses that protect against loss in exchange for a premium
What is a pension company?
Businesses that sell policies to help people save for retirement
What is a pawnbroker?
Someone who loans money against an asset
What is a payday loan company?
Businesses that offer short-term finance to bridge the gap to the next paycheck
What is a branch?
Physical bank where customers carry out transactions
What is online banking?
Using the internet to carry out transactions
What is telephone banking?
Use of a telephone to carry out banking transactions
What is postal banking?
Where the postal service carry out paper-based transactions
What is Citizens Advice?
Organisation run by charity that offers financial advice
What is an Independent Financial Adviser (IFA)?
Professionals that offer independent financial advice to clients
What is a price comparison site?
Website that collate prices for similar goods and services
What is the Money Advice Service?
Government organisation set up to offer free and impartial advice
What is a debt counsellor?
Professionals that offer independent advice on debt management
What is an Individual Voluntary Arrangement (IVAs)?
Government organisation that allows one to declare bankruptcy to pay back debts through an insolvency practitioner
What is accounting?
Recording planned or actual transactions to produce financial information
What is income?
Money entering a business
What is expenditure?
Money spent by a business
What is capital income?
Money invested to set up a business or buy equipment
What is revenue income?
Money that comes into the business from day-to-day functions
What is retained profit?
Money kept in the business to fund future expenditure
What are net current assets?
Assets that show the money available for day-to-day expenditure
What is a sale of assets?
Selling an item for a cash injection
What is owner’s capital?
Capital invested into a business from an owner’s savings
What is a loan?
Money borrowed for a set time period for a specific purpose, to be paid back with interest
What is crowd-funding?
Investment from speculative investors
What is venture capital?
Investment from an experienced entrepreneur in exchange for ownership
What is debt factoring?
Selling debt to a third party for a quick cash injection
What is a lease?
Payments in instalments to use an asset that isn’t owned until payment is complete
What is trade credit?
Time period where suppliers allow customers to buy now and pay later
What is a grant?
Lump sum provided to a business for a specific purpose
What is a donation?
Money given voluntarily to a business
What is peer-to-peer lending?
Where a business lends to another business for interest payments
What is invoice discounting?
Reductions offered to customers, usually as a %
What is break-even analysis?
Where a business isn’t making a profit or loss, money spent is the same as money earned
What is a variable cost?
Costs that change with output
What is a semi-variable cost?
Where part of the cost stays the same and part varied in relation to business activity
What is a fixed cost?
Costs that don’t change with output
What is total revenue?
Total amount of money coming in from sales
What are total sales?
Sales made within a time period
What is the selling price per unit?
The amount customers pay for each unit
What are sales in value?
Sales expressed as £
What are sales in volume (units)?
Sales expressed as a quantity
What is an opening balance?
Cash available at the start of the month
What is a closing balance?
Cash available at the end of the month
What is liquidity?
Measures a firm’s ability to meet short-term cash payments
What is a cash inflow?
Money coming into the business
What is a cash outflow?
Money going out of a business
What is a statement of comprehensive income?
Shows the trading position of a business to calculate profit/loss
What is an accrual?
When an expense is paid after a time period
What is a prepayment?
When an expense is paid in advance
What is a statement of financial position?
Provides a snapshot of a business’s net worth
What is a non-current asset?
Items owned by the business and used in the long-term
What is a current asset?
Items owned by the business with a fluctuating value
What is a current liability?
Things owed by the business which must be paid back within a year
What is a non-current liability?
Things a business owes that take more than a year to repay
What is depreciation?
An accounting concept that spreads the cost of an asset over its useful life
What is straight-line depreciation?
Where an asset is depreciated by a set amount annually
What is reducing balance depreciation?
Where an asset is depreciated by a set % of its remaining value annually
