Income And Expenditure

Question 1

What is income

Answer 1

Income is money or something of value recieved by a person or household

Question 2

What are the two types of income

Answer 2

The two types of income are irregular and regular income

Question 3

What is regular income

Answer 3

Regular income is money that is recieved every week or month. You can predict how much you will earn

Question 4

What are examples of regular income

Answer 4

Wages, child benefit and pensions are examples of regular income

Question 5

What are wages

Answer 5

Wages are weekly or monthly payments given in return for work

Question 6

What is unemployment benefit

Answer 6

Unemployment benefit is weekly payment made to people who are seeking work

Question 7

Whatis child benefit

Answer 7

Child benefit is monthly payment paid to parents of children 18 and under while they are in full time education

Question 8

What is a pension

Answer 8

A pension is a weekly payment to people who are over 65 and retired from work

Question 9

What is irregular income

Answer 9

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

Question 10

What are examples of irregular income

Answer 10

Overtime, commission, bonuses, gifts and interest are examples of irregular income

Question 11

What is overtime

Answer 11

Overtime is getting paid for working more hours, it may be paid at a higher rate

Question 12

What is a bonus

Answer 12

A bonus is an extra sum of money that may be paid if you reach a goal or if its a holiday like christmas

Question 13

What is commission

Answer 13

Commission is a percentage of the sale that a salesperson gets for selling it

Question 14

What is interest

Answer 14

Interest is money earned from investing your money. E.g. investing in a business

Question 15

What is benefit-in-kind

Answer 15

Benefit in kind is a non-financial reward. Some people recieve payment in the form of goods and services

Question 16

What are examples of benefit in kind

Answer 16

Health insurance, company car, discounted meals and discounted travel are examples of benefit in kind

Question 17

What is expenditure

Answer 17

Expenditure is the amount of money that we spend over a certain period of time

Question 18

What are the different types of expenditure

Answer 18

Fixed, irregular and discretionary are the types of expenditure

Question 19

What is fixed expenditure

Answer 19

This is a set amount of money that has to be paid on a regular basis. E.g bills

Question 20

What is irregular expenditure

Answer 20

Irregular expenditure is an amount of money that may differ on how much you use. E.g electricity

Question 21

What is discretionary expenditure

Answer 21

Discretionary expenditure is fun spending, which is money spe d on non essential items like the cinema

Question 22

What is current expenditure

Answer 22

Current expenditure is money spend on day to day items that will be used up within one year

Question 23

What are examples of currents expenditure

Answer 23

Food, light and heat are examples of current expenditure

Question 24

What is capital expenditure

Answer 24

Capital expenditure is money spent on things that will provide a benefit for more that one year

Question 25

What are examples of capital expenditure

Answer 25

Car, washing machine and furniture are examples of capital expenditure

Question 26

What is opportunity cost

Answer 26

Opportunity cost is the good or service you do without in order to buy another good or service

Question 27

What is financial cost

Answer 27

Financial cost is the price of a good or service