Commerce Y9

• A bank account is where you are able to keep your money, each account has a special ID or address. Banks give you cards, apps and websites to help you use your money to buy things and pay people.
• Interest is the price paid for borrowing money, or the money earned for lending money.
• A student loan is when someone decides to go to onto do further study, most people won't be able to afford to cost of their courses upfront. So, in order to study they get a student loan. A student is a loan usually provided by the government and paid directly to the university or study provider.
• There are 3 different types of accounts: Personal account, Real account and Nominal account. Personal account is the account that deals with people and business. Real account is the account that deal with tangible things/objects. Nominal account is the account that deals with intangibles.
• Capital is what the business owes the owner (E.g. - Money, assets)
• Drawings is the value of goods or cash taken out of the business by the owner. (E.g. - Money, Machinery, Funiture and Cars)
• Income is the monetary value of goods and/or services produced by the business to its customers. (E.g. - Revenue = Selling price x Number of products sold)
• Expenses is the cost of running the business. (E.g. - Salary, Electricity, Telephone charges)
• Debtors or Trade Receivables are people or firms that owe the business money for goods or services provided to them.
• Inventory is a complete list of items such as property, goods in stock, or the contents of a building.
• Balance Sheet provides an overview of the financial position of a company at a specific point in time.