personal business and finance Miss Conely Flashcards
what is cash sale?
someone pays instantly for a product or service
what is credit sales?
the customer has a set period to pay, not made until several days or weeks later
what is loans?
Borrowing money over a set period of time and paying interest every month
what is capital introduced
money put in by the business owner, their personal money invested in the business
what is sale of assets?
properties of machinery being sold
what is bank interest received?
interest given by a bank into your account
what is a cash purchase?
these are items that the business pays for immediately
what is a credit purchase?
items that have been bought and are being paid for at a later date
what is the rent?
This is a regular payment made to a landlord usually in exchange for a premises
What is a salary?
A salary is an outflow that is fixed regular payment. that is typically monthly
what is a wage?
wages are similar to a salary in terms of being paid to an employee. salaries are typically paid monthly but are expressed as an annual sum
what is utilities?
electricity, gas and water usage
what is a purchase of assets?
this refers to the purchase of non current assets that a business is likely to keep for more than a year such as websites, land and property
what is VAT?
businesses that are VAT registered must pay VAT to HMRC
what is bank interest paid?
An interest that is incurred due to borrowing money is also an outflow
