Learning Aim C: Personal and Business Finance Flashcards
Recording all the money coming into and going out the business (enable business to keep track of payments received and taxes (bills) are paid)
Record
The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
Management
Fulfilling the requirements of the law.
Compliance
Analysing the financial performance of the business, through looking at profit, valued owed and value owned by the business. Making improvements if necessary.
Measuring Profit
Controlling the money flowing into and out of the business, through maintaining accurate records.
Control
Money coming into a business.
Income
The money invested into the business by the owner or other investors (shareholders etc.).
Capital Income
A large sum of money borrowed from the bank to be paid back with interest.
Loan
A long-term loan extended to someone who buys property
Mortgage
Exists when an existing public limited company raises further finance by selling more of its shares
Share Issue
money invested in the business from the owner’s personal savings
Owners Capital
Is a type of long-term business debt not secured by any collateral.
Debenture
The money that comes into the business from performing its day to day function - selling goods and services.
Revenue Income
Sales where payment is received immediately, made with notes or coins.
Cash Sales
Goods sold to customers who will pay for these at an agreed date in the future
Credit Sales
An income received by the business for allowing another person or organisation to use their property
Rent Received
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.
Commission Received
Money earned on saving/lending
Interest Received
When a business is given a % off a sale, normally in return for quick payment/buying in bulk.
Discount Received
The cash spent on investments in a business, such as non-current assets.
Capital Expenditure
Unable to be touched or grasped; not having physical presence
Intangible
This is money that is spent on day to day expenses which keep the business running
Revenue Expenditure
The array of finished goods or goods used in production held by a company.
Inventory
A fee charged for the use of property or land
Rent
Payments made to the local council for services provided by them.
Rates
This covers payments for services such as gas and electricity. The business will receive regular bills.
Heating & Lighting
Costs associated with attracting potential customers to the business.
Marketing
protection against possible financial loss
Insurance
Costs incurred for the paperwork side of the business.
Administration
A charge/fee made by the bank to their customers.
Bank Charges
The amount of money charged on top of a loan/mortgage.
Interest Paid
(cost - residual value) / life expectancy
Straight Line Depreciation
An asset is depreciated by a set percentage of its remaining value each year
Reducing Balance Method - Depreciation
when the seller of goods or services grants a payment discount to a buyer.
Discount Allowed
