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Scramble
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Hint
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Answer
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ssoacp ,seh telnl u lrttroe l,tcsi,a uvllaloerr f,ei' aotootet cdh tianfaredstscranuvn r uage klmaaoo aha fn,teeooee
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Disadvantage of shares
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Don't have a lot of control, could lose capital, no guarantee, shares are not free, shares fluctuate, market is volatile
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so c f itiiin lfvrosanhih tonrhsiceeefa,ttl ioaee vlnddre ldoaasu,easogiiebeenonodr ain pd sinv mgepfesi tfetsoat c s,annettnsan in,bcwge msireem es t sdaurnpthiat vs nuctt
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What is IFA
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Professionals who offer independent advice to their clients about their financial matters, but it has a fee, it includes advice on savings, investments, mortgages and pensions
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fai c f rhio rci agino-t hniento telgadnov rernvn mion ossirtres m astanopat,tintotlinw nssraedbdbh asehsftafrntss o oemrmrgn yrema-oaeea
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What are credit unions
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Not-for-profit organisations that handle financial transactions and store money for its members, members are owners and have voting rights
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ogeficobrile ierninatca ge hneemt pc r sagnltedxrmsotnvtht
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What is HMRC
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British government department in charge of collecting taxes
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ttafbo cdnboeate ehcbtlyenoh wshcic .am re dewioosui n w tss wlhiudsgniiewclc eh tgrftemtuef n eouonen h cgsnmhn chor rueotrcaswetl aoueyk de rudk abhr r qo tneeedqrr,vtticelutr mht u co hlwe faerhee hrt tsb mce eoapnd g raeu iuisnninleceesiro ede reeomeh,opalto,aaciaroqed he
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Disadvantage of cheques
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Old fashioned, easy for the consumer to make errors when writing the cheque which will create problems for both the consumer and recipient, time delay between writing the cheque and it being cashed out could cause a consumer to go overdrawn, the bank could refuse to clear the cheque.
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leaet lss u-feer snaoossecv
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Gross Profit formula
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Sales Revenue - Cost of Sales
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rnsvihuem/eoeeiscdriog,iosbaw teaeeaca lrp ae.ce oak rh mssserufey rt ssennlua th s,c ia nlcsopoipwartnewi htapuhspd elo spbfs femgc s leftnfs ess rssna esuerfsc,y.tosthvhssrtim dsnssttrof aouosfuohsrassn, i osyteec eao n
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Why is cash flow forecasting so important
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Cash is the life of the business. Cash flow forecasts make advanced warnings of cash shortages, ensures the business can afford to pay suppliers/employees, spots issues with customer payments, reassures investors, for control.
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evvpd siryeoessyi rangen
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Disadvantage of Student accounts
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Overspending is very easy
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ontsmeo py fc dni caaeillf vgs,pur raaeoesc sern,ee fassnsmuisnoirt
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Advantage of Life insurance
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Reduces financial stress, gives some compensation, pays for funeral
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nas seesrafftrhgraistrnao omxprdyh.oarrnaetrl deeecteuercll en miihd tg toaa nfesr
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Disadvantage of CHAPS
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Normally there is a fixed charge per transaction regardless of the amount transferred.
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iesswis tv rst ocnroysrti s l rq t lssudnuertr.sl raaiu be tnjsntmie stt ryuonesbldicss eeih vonk ttrhs st h ,uc tutesi aoserfaratc aeiatlutenua tte sf nr ,ni nuimershtitia cnura.auatekehstioe v t cittfyhi hnb no qcn’eiyuhnees etsn aimod rdetruaceyesie
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What is Liquid Capital Ratio
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Measures a business’s liquidity, includes the current level of inventory in the business, it is the hardest current asset to turn into cash quickly. It is the same as current ratio but it just factors in the inventory and takes it away from the current assets.
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oowtloistla twosnu-lfal otft
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Net Cash Flow formula
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Total Inflows - Total Outflows
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dfehrgcbng ogtcai elprieensesa unotansadmcs fnho taadmagmfm rrskncterrmdty c,uasssy pikov nmru reoaraloolel.ei: ui emug axs nritale os ouaam nmnnbihanetif g wh eoni,lts megyaieiua evmo m p.smir stf ah.lnondhbivafnisinltpe,lchrrt.ttneuooo w e ,r ftr yfnomnetitpi nneio vet r
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Crowdfunding
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Raising small amounts of finance from a large number of people, usually through the internet. Short term and external. Ability to raise finance from many investors, can test market demand. Drawbacks: Time consuming, may involve giving up some ownership, high competition for funds.
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ttapt b eho aneealru etinmi anled e nn ee enroedm kapmakwytpsm s uebi rmno cut sr h dtctm,f u e ,yccolfosine adrpetie tt nnbsmedrtc a es s s nietttoayoaaagh ahrh ,iaoao. a mhaepeegaesde d
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Advantages of standing order
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The same amount is paid each time which makes it easier for the payee to budget and plan finances, easy both to set up and to cancel, no need to remember to make regular, standard payments.
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notrncsstoyeseeeb nt unoal p-istinnga nr rsmeon
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What is capital expenditure
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Money spent on non-current assets or intangibles
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cwdnso a esrn nt rekcnus keeoscgter ic,neidoo nl a, ican oa rsc csacuttditihsv ssedco,taaub thatacre lud gluelpont ebnidostrdnsctya lnkomnuofdrafercn osrpfsarh soav
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What is a student account
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Accounts for students with lots of perks like railcards, large overdrafts, discounts, cashback on purchases and can be converted into a normal account once studying ends
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ns,tartfso htcso tuoipiesrcrir aroas cfonaytncers fnotertssc ip aernfllorto pp- it eaef-kife a
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Disadvantage of electronic transfer
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Risk of loss if the transfer is incorrectly set up, not appropriate for face-to-face transactions
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totr c yrh/too cosv-aedcmoneemraeshntuuhmuedeuenlslsnigsoi fo,ssc ete bcn tsnirgtsr sa orso e
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What is capital income
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Income that comes from sources other than selling goods/services, used to buy non-current assets
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tht dohva aehm ihulsoa t era dt ymp dpocemuaennwacneu ot n
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What is goodwill
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How much value the reputation and name adds to the company
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ei vtlsnmua e ctf e sen has eys oa mismc ogllesviato cbearylesogeanetsutlmrors aas eacn ple le sltn naiti,oareftliuso g
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What are pawnbrokers
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Leaving something valuable as security for a loan, can sell useless items to create space or sell items to gain fast money
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u ,epios e ,atl d cetoloeft ov tlal ea kefcot teuyoaupncrflaraee dyhkl,ite icciro eerdapasmacieinemwacse sots ,aonon msrsehle)ncdladl(esrtoder wan ccr af sb enohmcb e aonieclylo chln ofss htn n,cstcl y i nrtroeil snst
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Advantages of credit cards
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Allows a period of interest free credit (usually a month), most cards are widely accepted, can be used online, can cancel if lost or stolen, more convenient than cash, offers loyalty schemes like cashback or collect points
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edu suerr,yiedby,a svottteo ledc ceeats tnena ebiartspn op
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Disadvantage of credit cards
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easy to overspend, easy to create debt, interest can build up
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v,dtpe rimn, st coosynar oobrsd ekafieesce bdr,am nvrtoei
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Disadvantage of Basic accounts
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No overdraft, sometimes no debit card, very basic, no perks
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airinrrafacseon.ol.aeinaadoattnoitywofofinl c oreanedhshhte rmy tte o gwtc msotdce utnrypmffwor ucoss su stn-lhll ebcn a ars nttfere tes ytkac
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What is BACS
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System that allows the transfer of payments directly from one bank account to another. Used for regular and low-cost transactions with efficiency.
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lf,eserbadoypaaacerv tct.,ssd aaurlr
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Name some CL
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overdrafts, accruals, trade payables.
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tow mtodte d hswnaeeipae i w tnelothdanti yuoeaanrcas u nrndcnbcrreltbdcshg ao h eno aiit
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What is a prepaid card
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Money is uploaded onto a card with transactions then being withdrawn to reduce the balance
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nlwoyadn avsp geyiyaonan,y endoposiietcordpe u c op eitvmwruinwe oaewems cre oironfb teh nsa aone l sc eesisuivutswds,nh dte eenetliraigahl anraolnwthi rdts
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Advantages of D&S
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Interest is earned on positive balances, you can deposit and withdraw money whenever you want, some need regular deposits which will force you into a savings plan
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esfptr ot gav roaierp nmfocdeeffdleoft steixrisportdsex sd nr taeu
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What is net profit
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Profit left over after expenses and tax is deducted from gross profit
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osoaira d nhaeseucnw eaaoot.nhchie eirsoi ur ncy fn stehes ie oxrdnee uctfsorebhceeef seplt h nnrya s t si araeep aaeoatn n e i aotonevdec f hsd nue h t idptikvd a tottpeooehalesfshdee,tttdalsmi .
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Where is depreciation showed on the SOCI and SOFP
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Annual depreciation is shown as an expense on the SOCI. Each year depreciation is deducted from the net book value of an asset at the end of the year, this is the value of the asset recorded in the SOFP.
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en oensefyxhm vpeseea lrit
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Disadvantage of Premium accounts
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Monthly fees are expensive
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e pia iepavh d ed yli.t nl nepfutf iusareiaonn ml dmn fuofa ,neelebsxt
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Disadvantage of charge cards
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Must be paid in full every month, often an annual fixed fee is applied.
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eraidisrtire ht pnnpehs cmaan oacrve aetdkhesv.bc nth,s,e ,en n nabyy,lia
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Name some CA
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inventory, trade receivables, prepayments, cash in the bank, cash in hand.
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neassgr b vc e srlvnuoprumeeaith neoeor sdgnvkiyaenifunsi wlgtdaesrsttkis etnnevtenoto vpnoclthmsh rob aeissidhtaii oh ieis anweolv d nu d tccria enenct
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What is the FOS
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Government organisation in the UK that backs customers in disputes with financial service providers and only gets involved when the issue cannot be resolved
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v rel goseaw eerm n atodp ,ybgetgiirstugeeei tlbnenhaaltssdhhe w
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What is a payday loan
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Small, very high interest loan used to bridge the gap between wages
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oipnocy ot tst oy,oo nr w oemnsplf s atnncdtcli tui nliu tol fndn adlhgo ioaisoro evsiaerr gvfbdl,eo cinmi omketo t onasecteinl ec thareatvltaner ge vu n htoetnoettale inrerh mshroyc lgnpnhh eeidfeosaesrf.lc ybuisnd ntndao am
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Advantages of prepaid cards
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Can set a budget in advance to avoid overspending, if lost or stolen the loss is only limited to the amount remaining on the card, an effective way of controlling the amount spent by children like money for school lunch or transport.
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wrenfto, ts nsge oaa,ohvprigrt pe eehe aivt ke soinot fdlaetelrfrai trns srx
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Disadvantage of standard accounts
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Low interest rates for saving, potential high overdraft fees, no extra perks
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oi etuaaecuooioof g sryeace’n cedydl bof ss sra ynvhtmth invtk vh .dnweceytg paetn p yt nvrh ne r ots sn wahpe ioecathomlnrgtla ssee nhccsaroicff io ooyesetoasthhhvse neeo dros n npcuusoufomei ingmhienrtruosnoreoymesopeptbrr e an tuirina apwei elrtvnrlwmh n erb agwaiga.bnhmpn ayisf ian s otaeddpa nirst vseiivsiaea tae hnfi rnyt,nmelipiyoo
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What are shares
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Type of investment that involves buying a portion of a companies’ ownership. When you invest in shares you become a part owner of the company meaning you have a stake in the profits and growth of the business. Many companies pay dividends which provide regular income for the investor, clearly there are transaction costs for buying and selling shares
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a fn nmenna admpeta oelt wio/rwwbs rin i c oevctaotvars dm eu3 rimrc ayon arrnaaaa ske ysgeoneatdoottcdtdyeailwe fro eypdgho gh
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What is direct debit
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An agreement made with a bank allowing a 3rd party to withdraw money from an account on a set day to pay for goods/services received
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s tnepniera,h tn e7i £pol-e s al£2mkak ime, 9a lstoietse fi cfssahp pffe1ea ip8.u r .ktemf0oatcp oi eeli% slsd4 escalsoid . i.oi guhaci1scee oe otshsohdos0aa 6r me r. sllnp nao d0g1 n cf’ihfpecel h ldg rm,ntaps roi aelyot o.% ptsa7i r6 t aocaststerkedef r tta crints p£lteie opw auggsasw i
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What is the markup
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MU looks at profit as a percentage of cost of sales, it shows what percentage of cost of sales is added to reach the selling price. So, if an item cost £6.70 to make and let’s say a 67% mark-up is applied, the selling price is £11.19. Or if a markup of 20% is applied then the selling price is £8.04.
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fvt sclreereo tlsscedorfaetnshhpin ulbema ts ireafeste s cne nooiaptir tgau os e ms/ro ge
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Define commission received
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Selling products from other businesses to earn a percentage of sales of that item/service
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aettti, pos niet f t e draobmtuwekysea ib oleehmdneirso csr nv aiponi
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Define loans
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Money lent to a business, paid back over a period of time with interest
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eiit gdnen e oo cdeir inecercxiwhprec pip er tr c toa e uroysesls asffssteao oe,nraplnesiooeet.am i ghftfl euemsur ir ws ltrfhdholualrtywrac seet ha.crisusubsaahrvnbosto ser tdeaescgmn cslrhtt .to tffhplpotsscoaishadsre etdhfcl, ieas tnisae l t auhonpsheono h s deee ssosolti ti dalrxtslt l,oo
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What is a SOCI
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Calculates whether the firm has made a profit or a loss by deducting all expenses from sales revenue. Shows the trading position of the business, which is used to calculate gross profit, it then considers all other expenses to calculate the profit or loss for the year. It records sales, costs and profit.
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nrcpkodnyautnt brrfamaelchinooee aasnycdnoe oeft .rrtetmr t
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What is electronic transfer
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Payment transferred directly from one bank account to another.
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ccontdflc rata lrbnh , ucsnteeulap a s p lenoty sn /t’ ,sloi lohtrretfaryti li.toaf to mlcaasoptescoatstieoe iarsu br ecyam iveo/cgufas afilaynnsae’nn kuroaokn rinu e ieumrutosc,od /d
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Disadvantage of cash
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Can get lost/stolen, risk of counterfeit/fake money, can’t be used online/virtually, only suitable for purchases up to a certain amount as it’s impractical to carry around loads of cash.
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bddoud yeper yostoi nssstoe uyvritis/t si wnsrrftaacf sgsa ninalnoeanaeesoig lil ctmcosdicl um
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What is a credit card
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Cards issued by financial institutions allowing customers to delay payments for goods/ services
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rbia nk d nss boycgoe eeaooltakobdisebeut rib a t eapvl enngs sradeet adwhy im
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What is a non-current liability
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Debt owed by the business to be paid back in over a year like mortgages and loans
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nngeian rtwsnel tatneoownoish.hedllf ro metnthsdadctbri g eremarec tn ucy aonhenena acritea
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What is a contactless card
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Cards containing antennae allowing money to be transferred when the card touches the terminal.
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badenaoildoiotreaio n nneshcdagit itunor au eafr hnstee optwlt.enbntnnma w nowt cndgt pni lrc terti,ae oeb edl cem faagasmeihllcd si fs eodvhoi ,
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Disadvantage of credit cards
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Interest is charged on balances not paid off within a month, a limit will be set on the amount of credit allowed, can encourage overspending and debt.
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ticmcsalnkat gcecfem hons nn iallo ns loern tu fdpy rooraia gl opaci seof oaopdme gieagei teliifnbra raamlise eyg
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What is money laundering
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Process of concealing the origins of illegally obtained money and making it appear as if it came from a legal source
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imhfaiiho ptocwa liurptwg rrort e nyd shneeet oea oe esfhyhtf
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What is an accrual
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When you pay for something after the period of which it relates
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