Income And Expenditure Flashcards
What is income
Income is money or something of value recieved by a person or household
What are the two types of income
The two types of income are irregular and regular income
What is regular income
Regular income is money that is recieved every week or month. You can predict how much you will earn
What are examples of regular income
Wages, child benefit and pensions are examples of regular income
What are wages
Wages are weekly or monthly payments given in return for work
What is unemployment benefit
Unemployment benefit is weekly payment made to people who are seeking work
Whatis child benefit
Child benefit is monthly payment paid to parents of children 18 and under while they are in full time education
What is a pension
A pension is a weekly payment to people who are over 65 and retired from work
What is irregular income
Irregular income is money that is recieved from time to time. You don’t know how much it may be so you cannot depend on it
What are examples of irregular income
Overtime, commission, bonuses, gifts and interest are examples of irregular income
What is overtime
Overtime is getting paid for working more hours, it may be paid at a higher rate
What is a bonus
A bonus is an extra sum of money that may be paid if you reach a goal or if its a holiday like christmas
What is commission
Commission is a percentage of the sale that a salesperson gets for selling it
What is interest
Interest is money earned from investing your money. E.g. investing in a business
What is benefit-in-kind
Benefit in kind is a non-financial reward. Some people recieve payment in the form of goods and services
What are examples of benefit in kind
Health insurance, company car, discounted meals and discounted travel are examples of benefit in kind
What is expenditure
Expenditure is the amount of money that we spend over a certain period of time
What are the different types of expenditure
Fixed, irregular and discretionary are the types of expenditure
What is fixed expenditure
This is a set amount of money that has to be paid on a regular basis. E.g bills
What is irregular expenditure
Irregular expenditure is an amount of money that may differ on how much you use. E.g electricity
What is discretionary expenditure
Discretionary expenditure is fun spending, which is money spe d on non essential items like the cinema
What is current expenditure
Current expenditure is money spend on day to day items that will be used up within one year
What are examples of currents expenditure
Food, light and heat are examples of current expenditure
What is capital expenditure
Capital expenditure is money spent on things that will provide a benefit for more that one year
What are examples of capital expenditure
Car, washing machine and furniture are examples of capital expenditure
What is opportunity cost
Opportunity cost is the good or service you do without in order to buy another good or service
What is financial cost
Financial cost is the price of a good or service
