busiiness

• 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 holder to buy goods and services that can be paid for later.
• Electronic transfer


  The transfer of funds from one account to another via the internet or telephone
• Mobile banking


  apps that allow online banking access from devices such as smart phones, tablets, etc.
• 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
• 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  Occurs when money is withdrawn from a bank account and the available balance goes below zero
• Hire purchase

  The buying of equipment by paying in instalments, usually including interest.
• Payday loan


  a high interest loan where money is borrowed against a future paycheck
• 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
• Life insurance


  Insurance that provides death benefits to the survivors of the insured.
• Travel insurance


  insurance meant to cover expenses over trips
• Bank of England


  The UKs central bank responsible for maintaining financial stability in the UK
• NS&Is


  National savings and investments
• Branch banking


  Going into the branch to make a financial transaction
• Telephone banking


  Making financial transactions over the phone
• Independant financial advisor


  Professional offering independant advice on financial issues
• Capital income


  any form of payment that derives from owning physical or financial capital
• Expenditure


  An amount of money spent.
• Non current assets


  Assets owned by a business that it expects to retain for one year or more
• Sale of assets


  when a business sells off its unwanted or unused assets to raise funds
• 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
• 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.
• Return on capital employed

  Net profit / capital employed x 100
• 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
• Retained profit


  Profit earned by a business that is kept within the company for reinvestment purposes
• Loss on sale of assets


  The difference between the sale price and the carrying value of an asset, when the sale price is lower than the carrying value