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
What is a standing charge?
A fixed cost to pay for the wires coming in to a house even if it has no electricity
What are wages?
Weekly or monthly payments given to an employee in exchange for work
Child benefit
Monthly payments by the state paid to a parents of children aged 18 and under while they are still in full-time education
Overtime
Working more hours than normal. Usually paid at a higher rate than regular income
Bonus
An extra sum of money that can be paid to a worker if they reach an agreed target. (Christmas bonus)
Commission
A salesperson is given a percentage of the sales price to encourage him to sell.
The more they sell the more they earn
