Cash
Money in the form of bills or coins
Debit card
A card used to withdraw money from a bank account
Credit card
A card authorizing the
... [Show More] holder to buy goods and services that can be paid for later.
Cheque
A written instruction to your bank to pay a sum of money to another person from your current account
Electronic transfer
The transfer of funds from one account to another via the internet or telephone
Direct debit
An electronic payment out of an account. The amount and frequency of a direct debit payment can vary
Standing order
n. an instruction to a bank to make regular payments
Contactless card
Cards containing antennae allow money to be transferred when the card touches a contactless terminal
Store card
a credit card which can only be used to buy goods in one particular shop or chain of shops
Mobile banking
apps that allow online banking access from devices such as smart phones, tablets, etc.
BACS
Bankers Automated Clearing Services
CHAPS
Clearing House Automated Payments System
Standard current account
Account with full banking facilities
Premium current account
An account with a fee entitling the user to extra services
Basic current account
Account with limited facilities usually used by someone with a poor credit rating
Student account
Account designed to assist young people to become prudent with their personal finances
Overdraft
Occurs when money is withdrawn from a bank account and the available balance goes below zero
Personal loan
Not backed up by collateral. Also known as an unsecured loan
Hire purchase
The buying of equipment by paying in instalments, usually including interest.
Mortgage
A payment, usually monthly, applied to the balance of a home loan used when purchasing housing
Payday loan
a high interest loan where money is borrowed against a future paycheck
ISA
Individual savings account
DSA
Deposit and savings account
Premium bonds
Government scheme allowing individuals to save a set amount in return for being entered into prize draw monthly
Gilts
Bonds issued by the UK government.
Shares
an individual buying ownership of a corporation
Pension
A sum of money paid regularly by a company to someone who has retired or has a disability
Car insurance
a type of insurance that covers any damage you may cause to another person or their vehicle
Home insurance
Insurance covering the building and contents owned by an individual
Life insurance
Insurance that provides death benefits to the survivors of the insured.
Travel insurance
insurance meant to cover expenses over trips
Health insurance
helps people pay for medicine and doctors when they are sick or hurt
Bank of England
The UKs central bank responsible for maintaining financial stability in the UK
Banks
An organisation that stores money on behalf of its customers
Building society
Organisation that stores money on behalf of customers- customers are members
Credit union
Credit unions are not-for-profit savings and lending financial institutions, owned by its members
NS&Is
National savings and investments
Pawnbrokers
legal business where loans are made based on the value of merchandise used as collateral
Branch banking
Going into the branch to make a financial transaction
Online banking
Making financial transactions online
Telephone banking
Making financial transactions over the phone
Citizens advice
Organisation offering advice on a range of issues
Independant financial advisor
Professional offering independant advice on financial issues
Price comparison site
Website offering comparisons of financial benefits
Debt counseller
Professional offering advice on dealing with debt
Capital income
any form of payment that derives from owning physical or financial capital
Revenue income
Income from the goods in which the business trades
Expenditure
An amount of money spent.
Non current assets
Assets owned by a business that it expects to retain for one year or more
Current assets
Cash and other assets expected to be exchanged for cash or consumed within a year
Retained profit
Profit which is kept back in the business and used to pay for investment in the business.
Sale of assets
when a business sells off its unwanted or unused assets to raise funds
Crowd funding
Using social networking to appeal to potential investors
Loans
amounts of money borrowed which will accumulate interest
Venture capital
Invested money used for new business opportunities
Debt factoring
The sale of a business' invoices to a third party.
Trade credit
The practice of buying goods and services now and paying for them later
Grant
A sum of money or other payment given for a particular purpose
Donation
Money given to charity
Break even point
point at which total revenue and total cost are equal
Fixed costs
Costs that do not vary with the quantity of output produced
Total costs
Fixed costs + variable costs
Variable costs
Costs that vary directly with the level of production
Selling price
the price paid by the customer for the product.
Cash flow forecast
A projection, usually by week or month, of the likely cash inflows and outflows in a business
Opening balance
The amount of money in a business at the start of the month
Closing balance
Opening balance + net cash flow
Depreciation
A decrease or loss in value
Liquidity
Availability of resources to meet short-term cash requirements.
Straight line depreciation
A constant amount of depreciation is subtracted from the value of the asset each year
Reducing balance depreciation
Reducing the value by a certain percentage, making depreciation less each year
Gross profit margin
Ratio of gross profit to net sales.
Mark up
The amount added to the cost of a product to set the selling price.
Net profit margin
Ratio of net income (gross sales minus expenses and taxes) to net sales.
Return on capital employed
Net profit / capital employed x 100
Current ratio
Current assets/current liabilities
Trade receivable days
The amount of time it takes debtors to pay bills
Trade payable days
The amount of time it takes creditors to pay bills
Inventory turnover
COGS/average inventory [Show Less]