Income And Expenditure Flashcards
What is Income?
Income is money or something of value received by a person or a household. Income can be regular or irregular.
What is Regular Income? Give Examples. What is an advantage of regular income?
Regular income is money received on a regular basis.
E.g. Wages, salary, Pensions etc.
You can predict how much you will receive and when so you can rely on it.
What is Irregular Income? Give Examples. What is a disadvantage of irregular income?
Irregular Income is money received from time to time. Often you do not know how much or when you will receive the money.
E.g. Overtime payments, Interest,commission etc.
You cannot predict how much you receive and when and you cannot depend on it.
What is BIK?
BIK or Benefit-in-kind is a non-financial reward received in the form of goods and services known as perks.
E.g. Company car, Company phone.
What is Fixed Expenditure? Give an example.
This is a set of money that must be payed on a regular basis. Same amount, same time. E.g. Mortgage
What is Irregular Expenditure? Give an Example.
The amount and timing if this can change depending on how much you use. E.g. Electricity bills.
What is Discretionary Expenditure? Give an example.
Money spent on non-essential items and should only be spent after fixed and irregular items have been paid for. E.g. Cinema.
What is Current Expenditure? Give an example.
Current Expenditure is spending money on day-to-day items that get used up within one year. E.g. Food
What is PAYE?
Pay as you earn: Tax on people’s wages.
What is PRSI?
Pay related social insurance: Contributes to the social welfare front.
What is USC?
Universal social charge: Temporary tax on people’s wages to help Ireland get through a financial crisis.
What is Capital Expenditure? Give an example.
Capital Expenditure is spending money on items that will provide a benefit for more than one year. E.g. A car
What is Opportunity Cost?
The opportunity cost is the good or service you go without (forgo) in order to buy another item or service.
What does financial mean?
Money
What is the difference between Gross pay and Net pay?
Gross pay is the pay an employee earns before deductions and Net pay is the pay an employee earns after deductions.
