Keywords p1 Flashcards Preview

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Flashcards in Keywords p1 Deck (44):
1

Asset

Something we own

2

Liability

Something we owe

3

Fixed asset

Something the business owns

4

What does current asset consist of

Cash, receivable, prepaid, expenses and other assets

5

What is in the current liability

Creditors and bank od

6

What are current liabilities

Liabilities that have been paid in cash within a year

7

What is the the financed by section

Authorised share capital
Issued share capital
Loans
Add reserves

8

What is the rule for:
- expense due
- expense pp
- income due
- income pp

Cl
Ca
Ca
Cl

9

What are receipts for a business?

Money in

10

How do you find the net profit

Gross profit + income - expenses

11

Actuary

A person who studies statistics and works out the risk of an accident happening

12

Dividend

Percentage of share capital

13

Shop steward

Worker elected by fellow workers to represent a trade union in the work place

14

Paypath

An electron mean of transferring an employees wages from employees bank account to the employees

15

CPI

Consumer price index

16

*remember for document question...

Total - discount + VAT

17

Irelands measure of inflation is...

CPI

18

What is the first figure in an income and expenditure account

Profit/ bar surplus

19

Depreciation

Is an expense

20

Revenue

Income for a business e.g. Receipts

21

What to remember about ACB and ledger

- figures in ledger go on the same side in the retrial balance, except bank goes on DR

22

What is total net debtors

Sales book

23

Sales book

CR CR DR

24

Purchases book

DR DR CR

25

Inflation

The increase in the general price of goods over a period of time

26

False economy

Saves money at the beginning, but over longer period of time, results in more money being spent

27

Insurance interest

You must suffer a loss when the insured item is damaged

28

Collateral/security

An asset that a borrower offers as a way to pay back a loan

29

Mixed economic system

An economy consisting of a mixture of public and private ownership

30

GNP

GDP less the profits sent out by foreign owned companies

31

What are the factors of production

Land
Labour
Capital
Enterprise

32

What is the formula for inflation

Increase in the prices in yr 2 >>divided<< by level of prices in yr 1

33

What is in a business document

Letter of enquiry
Quotation
Order
Invoice
Delivery note
Credit/ debit note

34

What is credit

Asset for business

35

Bad debt

A debt that cannot be recovered

36

Market research

The ways businesses gather info about consumers

37

What is the formula for compensation

Damage caused x insured
-------
Building

38

Debit card

Allows to transfers money electronically form consumers bank account when making a purchase

39

Credit card

Allows the sonsumer to purchase goods on credit

40

What is income and expenditure

Account of revenue income

41

What is a receipts and payment account

Summerized statement of all cash transactions for the accounting year

42

What are the cause of inflation

- Demand for goods and services
- Riding wages
- Higher taxes

43

What are the benefits of being an EU member

- Strongest economic area in the world
- Free trade - reduced the costs and prices for consumers

44

Effects of brexit on Ireland

- boarder controls
- currency