Other
Unit 3 Personal and Business finance Keywords Topic C
- Institution
- PEARSON (PEARSON)
All correct answers!
[Show more]
Content preview
Unit 3 Personal and Business financeTOPIC C KEYWORDS : EXPLORE THE PERSONAL FINANCIAL SECTOR
Key words Definition
C1 – PURPOSE OF ACCOUNTING
1. Compliance Financial reporting is governed by laws and regulations. This is to ensure that
all financial records give a fair and accurate picture of the business.
2. Corporation tax Is a tax that all limited companies must pay and it's a tax that's payable
against the profits a company makes.
3. Value-Added Is a consumption tax assessed on the value added to goods and services.
(Tax VAT)
C2 TYPES OF INCOME
4. Capital income Is the money invested by the owners or other investors that is used to set up a
business or buy additional equipment.
5. Loans Is an amount of money lent from a bank or other financial institution.
6. Mortgages Is a larger sum of money loan taken out to buy a property and is paid over a
long period of time (typically 25 years).
7. Shares Portion of a larger amount which is divided among a number of people, or to
which a number of people contribute. Eg shareholders
8. Owner’s capital Owner’s capital is money invested in a business from the owner’s personal
savings.
9. Debentures Are medium- to long-term sources of capital income.
10. Revenue income Is the money that comes into the business from performing its day-to-day
function –selling goods or providing a service.
11. Cash sales Sales or sales turnover, is money coming in from the sales of goods or
services. For example, a jeans shop has money coming in each time a
customer buys a pair of jeans.
12. Credit sales The customer buys then but pays at a later date.
13. Rent received A business that owns property and charges others for use of all or part of that
property will receive rent as their main source of income.
14. Commission They sell another business’s products on their behalf and, for each sale they
received make, they get paid a percentage on that sale. This percentage is called
commission.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller beneciarodrigues. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £0.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62555 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now