Flashcards
Topic 9 Budegts and Forecasts > key terms
Cards in this deck (23)
- 1Budget Deficita situation in which outgoings exceed income
- 2Budget Surplusa sum of money available once all the essential (+mandatory) expenditures in a given period e.g. a month, has been made
- 3Cash flow forecasta plan of expected incomings and outgoings over several time periods ,such as the next three months
- 4Consumer Price Index [CPI]one of the means the government uses to measure inflation. it is calculated by checking the price of a representative sample of goods on a monthly basis -this enables statisticians to measure how much prices are rising or falling
- 5Discretionary expenditurevoluntary spending on products and services that people want now, and saving towards items they aspire to buy in the future
- 6Dividenda payment of profits from a company to its shareholders , often at twice-annually intervals, either as cash or (depending on the plan) as further shares or reacquisition of shares
- 7Dutythe tax paid on certain items, including fuel, cigarettes and alcohol
- 8Essential expenditurespending on items required to live,
e.g. rent or mortgage repayments, food and drink, water supplier, gas and electricity - 9Incomeearnings, savings and interest payments received within a certain timeframe
- 10Income taxtax paid on earnings from employment, self-employment and interest on savings
- 11Inflationthe rise in prices = the fall in the purchasing power of money
- 12Insuranceproducts that give financial protection against certain events
e.g. someone who has travel insurance might be able to claim back the cost of a holiday if they have to cancel through illness. - 13Investmentsmoney paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in. these are a way of saving over the medium or long term
- 14mandatory expenditurecompulsory outings; they do not necessarily apply to everyone but if they do apply, they must be paid.
- 15needsthings that people must have to survive, such as food basic clothing, a place to live
- 16Office for National Statisticsthe independent organisation that provides statistics on many aspects of life in the UK such as employment, health, life expectancy in different areas of the country, housing etc.
- 17Pensionan income that people receive after retiring from work. .
In the UK these are provided
-by the state and can also be provided
-from schemes run from the persons former employer
-or arrangements that they have made for themselves (private) - 18Premium bonda lottery bond, issued by NS&I entered into a monthly prize draw with tax-free prizes aka : "premiums".
they must be held for a full calendar month after the month in which they were purchased and retail an equal chance of winning until cashed in - 19Real termsa value adjusted to account for the changes in prices.
e.g. although someone may receive a nominal pay increase of 5%, if inflation is 3% then in real terms the pay increase is approximately 5% - 3% =2% - 20Retail Price Index [RPI]one of the ways the government measure inflation.
It is calculated by checking the price of the representative sample of goods on a monthly basis but unlike CPI it takes into account mortgage interest payments and other costs associated with home ownership - 21Self-employmentearning an income by selling your goods or services directly to a consumer, rather than being employed by someone else and being paid a wage or salary
- 22Utilityan essential public service such as electricity, gas , water and sewerage
- 23Wantsthings that people would like to have but can survive without, such as entertainment, fashionable clothes, etc
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- Flashcards on Topic 9 Budegts and Forecasts > key terms, created by Dawn S_akura on 27/12/2016.
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- Dawn S_akura
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