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BTEC Level 3 Business: Unit 3 - Personal And Business Finance > Glossary > Flashcards

Glossary Flashcards

(100 cards)

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1
Q

What is cash?

A

Notes and coins

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2
Q

What is a debit card?

A

A card where payments are deducted from a current account

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3
Q

What is a credit card?

A

A card that allows customers to delay payments

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4
Q

What is a cheque?

A

A written order to a bank for a specific payment

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5
Q

What is an electronic transfer?

A

Payment transferred from one account to another

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6
Q

What is direct debit?

A

An agreement allowing a third-party to withdraw funds on a set day

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7
Q

What is a standing order?

A

An agreement to transfer a fixed sum to a third-party on a set day

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8
Q

What is a pre-paid card?

A

A card where money uploaded onto a card with transactions, then being withdrawn

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9
Q

What is a contactless card?

A

A card with an embedded chip and antenna enabling automatic transactions

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10
Q

What is a charge card?

A

A card that allows customers to delay payments for a short period of time, with the balance being paid off fully at each statement

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11
Q

What is a store card?

A

A card issued by a retailer to allow customers to delay payments

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12
Q

What is mobile banking?

A

Carrying out financial transactions on mobile devices

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13
Q

What is Banking Automated Clearing Services (BACS) and Faster Payments Services (FPS)?

A

A system that allows payment transfers from one bank account to another in 3 days

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14
Q

What is Clearing House Automated Transfer Services (CHAPS)?

A

A system that allows payment transfers from one bank account to another on the same day

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15
Q

What is a standard account?

A

An account that provides full day-to-day banking facilities

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16
Q

What is a packaged/premium account?

A

An account with an annual fee that offers extra incentives

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17
Q

What is a basic account?

A

An account that offers limited features, typically for people with bad credit histories

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18
Q

What is a student account?

A

An account designed to assist students and give bonus features

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19
Q

What is an overdraft?

A

An amount borrowed from the bank, paid back with interest

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20
Q

What is a personal loan?

A

Where you borrow a set amount of money that’s paid back in instalments, with interest

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21
Q

What is a hire purchase?

A

Where you have immediate access to an item but pay for it in regular instalments

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22
Q

What is a mortgage?

A

Long-term loan to fund the purchase of an asset

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23
Q

What is a payday loan?

A

Short-term source of finance that helps bridge the gap between now and payday

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24
Q

What is an Individual Savings Account (ISA)?

A

Tax-free way to save/invest

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25
What are deposit and savings accounts?
Accounts where interest is paid on the balance
26
What is a premium bond?
A government scheme where people save bonds and are placed into regular draws
27
What are bonds and gilts?
Where you lend money for interest payments
28
What are shares?
Investments in businesses for equity
29
What is a pension?
Long-term savings where people regularly contribute to be repaid at retirement
30
What is car insurance?
Where theft and accidents are covered, a legal requirement for all drivers
31
What is home insurance?
Where the physical building is covered from all damage
32
What is contents insurance?
Where physical items in the home are covered inside and outside
33
What is life assurance?
Where a lump sum is paid out following death
34
What is life insurance?
Where a lump sum is paid out following death in the given period
35
What is travel insurance?
Protection while abroad for property and money
36
What is pet insurance?
Where owners of pets are protected from pet expenses
37
What is health insurance?
Medical coverage for employees or families
38
What is the Bank of England?
UK's central bank that is responsible for financial stability
39
What is a bank?
An organisation that handles transactions and stores money on behalf of customers
40
What is a building society?
Like a bank but members are part owners and can vote in the society
41
What is a credit union?
Not-for-profit organisation that operates like a bank
42
What is National Savings and Investment?
A secure savings option backed by the government
43
What is an insurance company?
Businesses that protect against loss in exchange for a premium
44
What is a pension company?
Businesses that sell policies to help people save for retirement
45
What is a pawnbroker?
Someone who loans money against an asset
46
What is a payday loan company?
Businesses that offer short-term finance to bridge the gap to the next paycheck
47
What is a branch?
Physical bank where customers carry out transactions
48
What is online banking?
Using the internet to carry out transactions
49
What is telephone banking?
Use of a telephone to carry out banking transactions
50
What is postal banking?
Where the postal service carry out paper-based transactions
51
What is Citizens Advice?
Organisation run by charity that offers financial advice
52
What is an Independent Financial Adviser (IFA)?
Professionals that offer independent financial advice to clients
53
What is a price comparison site?
Website that collate prices for similar goods and services
54
What is the Money Advice Service?
Government organisation set up to offer free and impartial advice
55
What is a debt counsellor?
Professionals that offer independent advice on debt management
56
What is an Individual Voluntary Arrangement (IVAs)?
Government organisation that allows one to declare bankruptcy to pay back debts through an insolvency practitioner
57
What is accounting?
Recording planned or actual transactions to produce financial information
58
What is income?
Money entering a business
59
What is expenditure?
Money spent by a business
60
What is capital income?
Money invested to set up a business or buy equipment
61
What is revenue income?
Money that comes into the business from day-to-day functions
62
What is retained profit?
Money kept in the business to fund future expenditure
63
What are net current assets?
Assets that show the money available for day-to-day expenditure
64
What is a sale of assets?
Selling an item for a cash injection
65
What is owner's capital?
Capital invested into a business from an owner's savings
66
What is a loan?
Money borrowed for a set time period for a specific purpose, to be paid back with interest
67
What is crowd-funding?
Investment from speculative investors
68
What is venture capital?
Investment from an experienced entrepreneur in exchange for ownership
69
What is debt factoring?
Selling debt to a third party for a quick cash injection
70
What is a lease?
Payments in instalments to use an asset that isn't owned until payment is complete
71
What is trade credit?
Time period where suppliers allow customers to buy now and pay later
72
What is a grant?
Lump sum provided to a business for a specific purpose
73
What is a donation?
Money given voluntarily to a business
74
What is peer-to-peer lending?
Where a business lends to another business for interest payments
75
What is invoice discounting?
Reductions offered to customers, usually as a %
76
What is break-even analysis?
Where a business isn't making a profit or loss, money spent is the same as money earned
77
What is a variable cost?
Costs that change with output
78
What is a semi-variable cost?
Where part of the cost stays the same and part varied in relation to business activity
79
What is a fixed cost?
Costs that don't change with output
80
What is total revenue?
Total amount of money coming in from sales
81
What are total sales?
Sales made within a time period
82
What is the selling price per unit?
The amount customers pay for each unit
83
What are sales in value?
Sales expressed as £
84
What are sales in volume (units)?
Sales expressed as a quantity
85
What is an opening balance?
Cash available at the start of the month
86
What is a closing balance?
Cash available at the end of the month
87
What is liquidity?
Measures a firm's ability to meet short-term cash payments
88
What is a cash inflow?
Money coming into the business
89
What is a cash outflow?
Money going out of a business
90
What is a statement of comprehensive income?
Shows the trading position of a business to calculate profit/loss
91
What is an accrual?
When an expense is paid after a time period
92
What is a prepayment?
When an expense is paid in advance
93
What is a statement of financial position?
Provides a snapshot of a business's net worth
94
What is a non-current asset?
Items owned by the business and used in the long-term
95
What is a current asset?
Items owned by the business with a fluctuating value
96
What is a current liability?
Things owed by the business which must be paid back within a year
97
What is a non-current liability?
Things a business owes that take more than a year to repay
98
What is depreciation?
An accounting concept that spreads the cost of an asset over its useful life
99
What is straight-line depreciation?
Where an asset is depreciated by a set amount annually
100
What is reducing balance depreciation?
Where an asset is depreciated by a set % of its remaining value annually

BTEC Level 3 Business: Unit 3 - Personal And Business Finance (16 decks)

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