Unit A Flashcards
(31 cards)
What are the functions of money?
Unit of accounts
Means of exchange
Store of value
Legal tender
Ways to Pay
Cash,Debit card,Credit card,Cheque, Electronic Transfer,Direct debit, Standing order, Prepaid card, Contactless card, Charge card,Store card, Mobile banking, BAC’s, CHAPS
Cash advantages and disadvantges
Pros- Widely accpeted form of payment, Physical not virtual
Cons-Can be easily lost or stolen, Cannot be used online
Debit card advantages and disadvantages
Pros- No need to carry cash, Secure method of payment as less likely to be robbed
Cons-Short time lapse between transaction and money being withdrawn so could result in overspending, Not accepted for small transaction
Credit Card advantagess and disadvantages
Pros- Loyalty schemes are often offered, offers a degree of protection on payments
Cons-Interest is charged on balances not paid off within a month, Can encorage overspending and getting into debt
Cheque advantages and disadvantages
Pros- Low risk as can only be cashed in by person its adressed to
Cons- Time delay between writting and it being cahsed could result in consumer being overdrawn
What is a current account?
A current account is a type of bank account that allows for frequent transactions, including deposits and withdrawals.
True or False: Current accounts typically offer interest on deposits.
False: Current accounts usually offer little to no interest on deposits.
What is a primary advantage of a current account?
A primary advantage of a current account is its accessibility for day-to-day transactions.
Fill in the blank: Current accounts may have _______ fees associated with overdrafts.
monthly or transaction
Which type of current account typically has higher fees but offers additional services?
Premium current accounts
What is a standard current account?
A standard current account is a basic bank account that allows customers to deposit and withdraw money, make payments, and manage their finances without any restrictions.
True or False: A student current account typically offers lower fees and interest-free overdrafts.
True
Fill in the blank: A __________ current account is designed for individuals who frequently travel internationally and may require foreign currency transactions.
multi-currency
Which type of current account usually offers additional features like higher interest rates and premium services?
premium current account
What is one key benefit of a joint current account?
A joint current account allows two or more individuals to share access to funds and manage finances together.
Purpose of accounting
Record transactions, Management of the business, Compliance, Measuring performance and Control of the business
What is Capital Income
Money invested by the owners or other investors that is used to set up a buusiness or buy additional equipment
Types of capital income
Loans, Mortagages, Shares, Owners Capital, Debentures
Whats Revenue income
Money that comes into a business from performing its day to day functions - selling goods or providing a service
Types of revenue income
Sales, Rent recieved, Commision recived, Interest paid and Discount recieved
What is capital expenditure
Used to buy Capital items which are the assests that will stay in the business for a long period of time. Capital items are non- current assests and intangible assests.
Whats Non-current assests
Items owned by a business for a reasonable period of time -such as land premises machinery and equipment, vehicles, fixtures and fittings
Whats an intangible?
Assest that is owned by the business that cannot be touched but adds value to a business- such as Goodwill(such as buying an existing business as its name and reputation is already known), Patents (legal protection of an invention), Trademarks or brandname