ethan strange
Flashcards by ethan strange, updated more than 1 year ago
ethan strange
Created by ethan strange over 4 years ago

Resource summary

Question Answer
Definition of Money?(Purpose) 1)Divisible 2)Portable 3)Durable 4)Scarce 5)Recognizable
What are the functions of money? 1)Unit of Accountant 2)Means of exchange 3)Store of value 4)Legal Tender
What Factors affect spending? 1)Personal Attitude 2)Life Stages 3)Culture 4)Life events 5)External influence 6)Interest Rates
What does IVA stand for? Individual Voluntary Arrangement
When Are IVAS best use ? When you have Assets you don't want to loose. However if you don't have Assets just Declare Bankruptcy .
What types of Current Accounts Are there? 1)Standard 2)Packaged Premium 3)Basic 4)Student
5 Forms of Borrowing? 1)Over Draft 2)Credit Card 3)Mortgage 4)Loan 5)Family members
What does APR mean? Annual Percentage Rate (Loan + APR + Set up Fees)
5 Types of Saving Accounts? 1)Saving loose change 2)Bank Account (Current) 3)Saving Accounts(No Fixed term) 4)Saving account (Fixed term) 5)ISA(Cash)
The Three types of Car Insurance? Third Party Third party, Fire and Theft Fully Comprehensive
What is the difference between Compulsory and Voluntary Excess? Compulsory- How Much you must pay to make the claim Voluntary- Is Determined by you and how much your willing to pay?
Financial Institutions? Bank Of England Building Society A Bank
Places to get money Advice ? Citizens Advice Independent Financial Adviser (IFA) Money Advice Service Debt Counselors
5 Inflows 1)Sales Cash 2)Sales Credit 3)Loans 4)Bank Interest Received 5)Capital introduced
5 Outflows 1)Stock 2)Asset Purchase 3)Credit Purchase 4)Salaries 5)Utilities
Key Terms (Find Definitions) Opening Balance Closing Balance Credit period Liquidity Insolvent
Types of Income? Capital Income Loans Mortgages Shares Owners Capital Debentures
What is the purpose of business accounting? Measures performance Compliance Record Transactions Control Management of business Compliance
Profit Calculations? Profit = Revenue - Cost
Gross Profit Calculations? Gross Profit = Sales Revenue - Cost Of Sales
Net Profit Calculation? Net Profit = Gross Profit - Operating Costs
Capital Expenditure? Is Used to buy Capital Items, which are assets that will stay in the business for a long period of time.
What is a non-current asset ?(Tangible) Items that will be owned in the business for a long period of time.
what is an Intangible asset? Something owned by the business that cant be touched(Patents,Trade Marks,Brand Names)
Retained Profit? Profit that's kept in the business
Net Current Asset? The Money Available to fund day to day expenditure
Sales Of Assets? Selling an item of worth to achieve an instant injection of cash flow
Owners Capital The money invested in the business from the owners personal Savings
Venture Capital? When an experienced entrepreneur Invests in A Business
Types of Cost? Variable Costs Semi-Variable Fixed Cost Total Costs
What is break even point? When your revenue Generated cover costs.
Types of Revenue? Total Revenue Total Sales Selling price Per Unit Sales in value Sales in Volume
Contribution per-unit Calculation? Contribution per-unit= selling price - Variable costs per Unit
Total Contribution Calculation? Total Contribution = sales Revenue - Total Variable Cost
Break Even Calculation? Break even = Fixed cost/ Contribution
Total Variable cost? Total Variable Cost= Variable cost per unit * quantity
Margin Of safety Calculation? Margin of Safety = Actual Sales - Break even Levels of Output
Return on Capital Employed Calculation ?
Mark Up Calculation
Net Profit Margin Calculation
Gross Profit Margin Calculation x100
Current Ratio Calculation
Liquid Capital Ratio Calculation Current Assets - Inventory / Current Liability
Inventory Turnover Calculation (Average Inventory / Cost Of Sales) x 365 Average Inventory = Opening + Closing / 2
Trade Receivable Days Calculation (Trade Receivable / Cost Of Sales) X 365
Trade Payable Days Calculation (Trade Payable / Credit Purchases) X 365
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