flash card term 4

Question 1

the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing

Answer 1

finacial literacy

Question 2

the study of scarcity, the study of how people use resources and respond to incentives, or the study of decision-making.

Answer 2

econimics

Question 3

the state of being scarce or in short supply; shortage.

Answer 3

scarcity

Question 4

when you pick something it is the other option you lose out on

Answer 4

opportunity cost

Question 5

the process of recording financial transactions pertaining to a business or person

Answer 5

accounting

Question 6

anything of value that an individual, a business enterprise, or another entity owns

Answer 6

assets

Question 7

the state of being legally responsible for something.

Answer 7

liabilities

Question 8

money received, especially on a regular basis, for work or through investments.

Answer 8

income

Question 9

a fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Answer 9

salary

Question 10

when you get payed based on how many hours you work

Answer 10

wage

Question 11

a payment made to employees based on the value of sales achieved.

Answer 11

Commission

Question 12

expense stays the same every time you get billed

Answer 12

Fixed Expenses

Question 13

the cost incurred in or required for something

Answer 13

Expenses

Question 14

expense that differ from every time you are billed

Answer 14

Variable Expenses

Question 15

how quickley you can sell somthing

Answer 15

Liquidity

Question 16

the annual income from an investment expressed as a proportion (usually a percentage) of the original investment.

Answer 16

Rate of Return

Question 17

an increase in the value of an asset or investment over time

Answer 17

Capital Growth

Question 18

a part or portion of a larger amount which is divided among a number of people, or to which a number of people contribute.

Answer 18

Shares

Question 19

investing in multiple businesses so if one fails you don’t lose all your money

Answer 19

Diversification

Question 20

Investing a certain amount for a predetermined period for a higher interest rate

Answer 20

Term Deposits

Question 21

what is the three step procces to accounting

Answer 21

transition accrues, sorce documents are produced, journals are wrote

Question 22

what is morgage

Answer 22

a lone for a property payed over 30 years