Finance

• What is the definition of an account?

  A record of income and expenditure relating to a particular period or purpose
• What does the term 'balance' refer to?

  The difference between debits and credits
• What is a bank statement?

  The details of all transactions made from one bank account in a given time period
• What is the break-even point?

  Where total cost equals total sales, resulting in neither profit nor loss

  
• What is a budget?

  A plan of how to spend money
• What is a bursary?

  A sum of money given to cover the cost of formal studies
• What does 'capital' refer to?

  Money owned by someone used for investing or lending
• What is commission?

  A sum of money paid to an agent as a percentage of total sales
• What is compound interest?


  Interest charged on an amount due, including interest charges to date
• What is the consumption rate?

  The rate at which a commodity is consumed
• What does cost-effective mean?

  Best value for money
• What is the cost price?

  The amount that it costs per unit to manufacture or purchase an item
• What is a credit?

  An entry in an account showing a payment made into the account
• What is a credit card?

  A service bank product that allows you to buy goods and pay for them later
• What is a debit?

  Money deducted from an account
• What is a debit order?

  An arrangement allowing a third party to withdraw money from your account regularly
• What is disposable income?

  Income left over after all payments have been made
• What is an exchange rate?

  The value of one currency relative to another
• What is expenditure?

  An amount of money spent on something
• What is a fixed deposit?

  A single deposit invested for a fixed period at a fixed interest rate
• What are fixed expenses?

  Amounts that must be paid every month and stay the same for a period of time
• What is gross income?

  The total amount of all an individual’s income before deductions
• What is inflation?

  An increase in the price of a basket of goods or services
• What is interest?

  Money paid regularly for the use or loan of money
• What is the interest rate value?

  The percentage rate of interest charged on a loan amount
• What are the objectives of the tariff section?

  1. Work with various tariff systems (municipal, telephone, transport)
  2. Calculate costs using tariffs and formulae
  3. Draw and interpret graphs of tariff systems
  4. Compare different options for tariff systems
  5. Draw graphs to represent options and interpret intersections
• What is a tariff?

  The charge in rands per measuring unit for a specific service
• What is the formula for calculating total cost using tariffs?

  Total cost = number of units ⨉ tariff (cost per unit)
• How is electricity usage measured?

  In kilowatt per hour (KWh)
• What determines the amount of electricity a person pays each month?

  The number of KWh of electricity used during the month
• What are the electricity billing options?

  Prepaid or fixed billing system
• What does a sliding scale for electricity tariffs mean?

  The more electricity you use, the higher the rate charged
• What is the tariff per kWh charged in block 2?

  R0,9440
• How much would you pay for 250 kWh of electricity using the given tariff table?

  R265,28
• What is the VAT rate charged on electricity tariffs?

  15%
• What is the definition of a water tariff?

  The charge for water consumption measured in kilolitres (kℓ)
• How is water consumption measured?

  In kilolitres (kℓ)
• What does a sliding scale for water tariffs mean?

  The more water you use, the higher the rate charged
• What is the tariff for the first 6 kℓ of water?

  Free
• How much would you pay for 21 kℓ of water using the given tariff table?

  R145,10