finance Flashcards
(45 cards)
4 functions of money
unit of account, means of exchange, store of value, legal tender
6 factors of that influence our view on money
personal attitude, life stages, culture, life events, external influences, interest rates,
ways of planning expenditure
avoid getting into debt, control costs, repossession,avoid bankrupcy , manage money to fund purchases, generate income and savings, set financial targets and goals.
ways of paying for products
cash. credit card, debit card, cheque, pre paid cards, contactless cards, charge cards
types of current accounts
standard, packaged, student, basic
6 ways of saving
individual savings account, deposit and savings account, premium bonds, bonds and gilts, shares pensions
6 types of insurance
car, home, life, travel, pet, health
6 types of borrowing
overdraft, personal loans, hire purchase, mortgages, credit cards, payday loans
types of financial institution
bank of England, bank, building societies, credit unions, national savings and investment, pawnbrokers, payday loans, insurance companies, pension companies.
methods of interacting customers
branch, online banking, telephone banking, mobile banking, postal banking.
laws that protect the right of the customers
financial conduct authority, financial ombudsman service, financial service compensation scheme, consumer credit
organisations that provide financial service
citizens advice, independent financial advisor, money advice service, debt counsellors,
5 purposes of accounting
recording transactions, management of business, compliance, measuring performance, control
capital income
loan, mortgage, owners capital, shares, debentures
revenue income
cash sales, credit sales, rent received, discount received, interest received, commission received.
what you spend your revenue on
rent, rates, bills, water, insurance, postage, salaries,wages, marketing, stock.
3 internal sources
retained profit, net current assets, sale of assets.
capital expenditure
land, building, machinery, vehicle, goodwill, patents, trademarks, brand names.
net cash flow
inflow- outflow
closing balance
net cashflow + opening balance
variable costs
quantity cost x cost of one unit
total costs
fixed costs + variable costs
total revenue
How much sold x selling price
break even-point
fixed cost/contribution per unit
