Flashcards in Income And Expenditure Deck (19):
What is Income?
Income is money received by a person or coming in to a household. Income can be irregular or regular
What is Regular Income?
Regular income is income received on a regular basis.
E.g. Wages, salary, Pensions etc.
What is irregular income?
Irregular Income is money received from time to time and you usually you do not know how much or when you will receive the money.
E.g. Overtime payments, Interest,commission etc.
What is BIK
BIK or Benefits in kind is payment received in the form of perks.
E.g. Company car, Company phone.
What is Fixed Expenditure
This is a set of money that must be payed on a regular basis.
What is Irregular Expenditure?
The amount and timing if this can change depending on how much you use. E.g. Electricity bills.
What is discretionary expenditure?
Money spent on non-essential items and should only be spent after fixed and irregular items have been paid for.
What is current Expenditure?
Current Expenditure is spending money on day to day items that get used up within one year. E.g. Food
What is PAYE?
Pay as you earn-tax on people’s wages.
What is PRSI?
Pay related social insurance-contributes to the social welfare front.
What is USC?
Universal Social charge-temporary tax on people’s wages to help Ireland get through a financial crisis.
What is Capital Expenditure?
Capital Expenditure is spending money on items that will provide a benefit for more than one year.
What is Opportunity Cost?
The opportunity cost is the good or service you go without (forgo) in order to buy another item or service.
What does financial mean?
What is the difference between Gross pay and Net pay?
Gross pay is the pay an employee earns before deductions and Net pay is the pay an employee earns after deductions.
Name three examples of Voluntary Deductions?
What is Disposable Income?
Money left for discretionary expenditure.
What is a dividend?
A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves.)