Income + Expenditure Flashcards
What is regular income?
Income paid at fixed intervals ( Jobseeker’s Allowance / wages )
What is additional income?
Income that is received occasionally ( bonus / overtime )
What is benefit-in-kind?
It is a ‘perk’ not paid in money.
official benefit: company car / car insurance
Unofficial benefit: stationary / personal calls
What is income?
Income is money earned
What is a statutory deduction?
Money you must give up from a salary or wages
(PAYE - pay as you earn. Income tax)
(PRSI - pay related social insurance. Social welfare benefit / pension / healthcare)
What are voluntary deductions?
Money you chose to give up from a salary or wages.
Pension contribution / health insurance / trade union subscription
What is a payslip?
Everyone who is employed must get a payslip.
They include: name, period covered, gross pay, deductions, net pay.
What is gross pay?
Basic pay + overtime + commission + bonus
What is net pay?
Gross pay - all deductions
What is current expenditure?
Money spent on goods / services for immediate use ( ESB bill/ food )
What is capital expenditure?
Money spent on goods we will continue to enjoy the benefits of in the future ( house / car )
What is fixed expenditure?
Bills which have to be paid regularly at fixed amounts ( mortgage repayments )
What is irregular expenditure?
Money Spent on bills to be paid regularly but at various amounts ( eircom bills )
What is discretionary expenditure?
Money spent on things that are entirely optional ( eating at a restaurant )
What is an opportunity cost?
When someone has to make a choice
They decide to buy something and decide not to buy something else
They sacrifice one thing for another
