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Ems Term 2 > financial Literacy > Flashcards

Flashcards in financial Literacy Deck (10)
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1
Q

What is Assets

A

Everything the business owns,had value , can be converted into cash 💰 and benefits the business

2
Q

What is liabilities

A

All the money 💰 OWED BY the BUSINESS to other people and businesses

3
Q

What is owner equity

A

The owners interest in the business or wat the business owes the business

4
Q

What’s is capital

A

Money that the owner puts in to start and run the business

5
Q

Nam two types of ASSETS A

A
  1. Current assets
  2. Fixed assets
6
Q

Explain what the two type of assets mean

A

Current assets -asserts taht value changes within a year and these assets can be converted into cash 💰

Fixed assets - assets that value changes after a year

7
Q

Give examples of assets in the two groups

A

FIXED ASSESTS

land and buildings
Vehicles 🚗
Equipment
Machinery
Fixtures and fittings
fixed deposit -an amount is money invested to earn profit

CURRENT ASSETS

•TRADING STOCK / INVENTORY - goods bought for resale
•BANK-all the money 💵/cash of the business
•PETTY CASH💷-small amount is money 💵 kept in a box 📦 to make small purchases
•CASH💰 FLOAT -money kept in a till for the purpose of giving change
•DEBTORS CONTROL -money OWED TO the business by customers

8
Q

Liabilities fall into two groups

Name these two groups

A
  1. Long term -those will be paid only after a year
    EXAMPLE :loan from a bank 🏦
  2. Current liabilities-those will be paid within a year

EXAMPLE:

Creditors control : the money owed by the business to supplies

Bank 🏦 overdraft : money owed to the bank when the business makes payments from which it’s does not have money

Lay buy: the money an individual owes a store when he /she buys an item and pays it off over a few months

9
Q

What is the meaning of income s

A

The money that a business receives from selling goods ;your time ,skill or providing a service

10
Q

Give examples of incomes

A

Sakes