Learning Aim C: Personal and Business Finance

Question 1

Recording all the money coming into and going out the business (enable business to keep track of payments received and taxes (bills) are paid)

Answer 1

Record

Question 2

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

Answer 2

Management

Question 3

Fulfilling the requirements of the law.

Answer 3

Compliance

Question 4

Analysing the financial performance of the business, through looking at profit, valued owed and value owned by the business. Making improvements if necessary.

Answer 4

Measuring Profit

Question 5

Controlling the money flowing into and out of the business, through maintaining accurate records.

Answer 5

Control

Question 6

Money coming into a business.

Answer 6

Income

Question 7

The money invested into the business by the owner or other investors (shareholders etc.).

Answer 7

Capital Income

Question 8

A large sum of money borrowed from the bank to be paid back with interest.

Answer 8

Loan

Question 9

A long-term loan extended to someone who buys property

Answer 9

Mortgage

Question 10

Exists when an existing public limited company raises further finance by selling more of its shares

Answer 10

Share Issue

Question 11

money invested in the business from the owner’s personal savings

Answer 11

Owners Capital

Question 12

Is a type of long-term business debt not secured by any collateral.

Answer 12

Debenture

Question 13

The money that comes into the business from performing its day to day function - selling goods and services.

Answer 13

Revenue Income

Question 14

Sales where payment is received immediately, made with notes or coins.

Answer 14

Cash Sales

Question 15

Goods sold to customers who will pay for these at an agreed date in the future

Answer 15

Credit Sales

Question 16

An income received by the business for allowing another person or organisation to use their property

Answer 16

Rent Received

Question 17

A business may sell products/services as an agent for another business. They sell a product on their behalf and for each sale made they get a % or a commission.

Answer 17

Commission Received

Question 18

Money earned on saving/lending

Answer 18

Interest Received

Question 19

When a business is given a % off a sale, normally in return for quick payment/buying in bulk.

Answer 19

Discount Received

Question 20

The cash spent on investments in a business, such as non-current assets.

Answer 20

Capital Expenditure

Question 21

Unable to be touched or grasped; not having physical presence

Answer 21

Intangible

Question 22

This is money that is spent on day to day expenses which keep the business running

Answer 22

Revenue Expenditure

Question 23

The array of finished goods or goods used in production held by a company.

Answer 23

Inventory

Question 24

A fee charged for the use of property or land

Answer 24

Rent

Question 25

Payments made to the local council for services provided by them.

Answer 25

Rates

Question 26

This covers payments for services such as gas and electricity. The business will receive regular bills.

Answer 26

Heating & Lighting

Question 27

Costs associated with attracting potential customers to the business.

Answer 27

Marketing

Question 28

protection against possible financial loss

Answer 28

Insurance

Question 29

Costs incurred for the paperwork side of the business.

Answer 29

Administration

Question 30

A charge/fee made by the bank to their customers.

Answer 30

Bank Charges

Question 31

The amount of money charged on top of a loan/mortgage.

Answer 31

Interest Paid

Question 32

(cost - residual value) / life expectancy

Answer 32

Straight Line Depreciation

Question 33

An asset is depreciated by a set percentage of its remaining value each year

Answer 33

Reducing Balance Method - Depreciation

Question 34

when the seller of goods or services grants a payment discount to a buyer.

Answer 34

Discount Allowed