BTEC Business- Unit 3 Finance revision exam 79 Questions with Answers ,100% CORRECT

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BTEC Business- Unit 3 Finance revision exam 79 Questions with Answers Cash - CORRECT ANSWER Money in the form of bills or coins Debit card - CORRECT ANSWER A card used to withdraw money from ... a bank account Credit card - CORRECT ANSWER A card authorizing the holder to buy goods and services that can be paid for later. Cheque - CORRECT ANSWER A written instruction to your bank to pay a sum of money to another person from your current account Electronic transfer - CORRECT ANSWER The transfer of funds from one account to another via the internet or telephone Direct debit - CORRECT ANSWER An electronic payment out of an account. The amount and frequency of a direct debit payment can vary Standing order - CORRECT ANSWER n. an instruction to a bank to make regular payments Contactless card - CORRECT ANSWER Cards containing antennae allow money to be transferred when the card touches a contactless terminal Store card - CORRECT ANSWER a credit card which can only be used to buy goods in one particular shop or chain of shops Mobile banking - CORRECT ANSWER apps that allow online banking access from devices such as smart phones, tablets, etc. BACS - CORRECT ANSWER Bankers Automated Clearing Services CHAPS - CORRECT ANSWER Clearing House Automated Payments System Standard current account - CORRECT ANSWER Account with full banking facilities Premium current account - CORRECT ANSWER An account with a fee entitling the user to extra services Basic current account - CORRECT ANSWER Account with limited facilities usually used by someone with a poor credit rating Student account - CORRECT ANSWER Account designed to assist young people to become prudent with their personal finances Overdraft - CORRECT ANSWER Occurs when money is withdrawn from a bank account and the available balance goes below zero Personal loan - CORRECT ANSWER Not backed up by collateral. Also known as an unsecured loan Hire purchase - CORRECT ANSWER The buying of equipment by paying in instalments, usually including interest. Mortgage - CORRECT ANSWER A payment, usually monthly, applied to the balance of a home loan used when purchasing housing Payday loan - CORRECT ANSWER a high interest loan where money is borrowed against a future paycheck ISA - CORRECT ANSWER Individual savings account DSA - CORRECT ANSWER Deposit and savings account Premium bonds - CORRECT ANSWER Government scheme allowing individuals to save a set amount in return for being entered into prize draw monthly Gilts - CORRECT ANSWER Bonds issued by the UK government. Shares - CORRECT ANSWER an individual buying ownership of a corporation Pension - CORRECT ANSWER A sum of money paid regularly by a company to someone who has retired or has a disability Car insurance - CORRECT ANSWER a type of insurance that covers any damage you may cause to another person or their vehicle Home insurance - CORRECT ANSWER Insurance covering the building and contents owned by an individual Life insurance - CORRECT ANSWER Insurance that provides death benefits to the survivors of the insured. Travel insurance - CORRECT ANSWER insurance meant to cover expenses over trips Health insurance - CORRECT ANSWER helps people pay for medicine and doctors when they are sick or hurt Bank of England - CORRECT ANSWER The UKs central bank responsible for maintaining financial stability in the UK Banks - CORRECT ANSWER An organisation that stores money on behalf of its customers Building society - CORRECT ANSWER Organisation that stores money on behalf of customers- customers are members Credit union - CORRECT ANSWER Credit unions are not-for-profit savings and lending financial institutions, owned by its members NS&Is - CORRECT ANSWER National savings and investments Pawnbrokers - CORRECT ANSWER legal business where loans are made based on the value of merchandise used as collateral Branch banking - CORRECT ANSWER Going into the branch to make a financial transaction Online banking - CORRECT ANSWER Making financial transactions online Telephone banking - CORRECT ANSWER Making financial transactions over the phone Citizens advice - CORRECT ANSWER Organisation offering advice on a range of issues Independant financial advisor - CORRECT ANSWER Professional offering independant advice on financial issues Price comparison site - CORRECT ANSWER Website offering comparisons of financial benefits Debt counseller - CORRECT ANSWER Professional offering advice on dealing with debt Capital income - CORRECT ANSWER any form of payment that derives from owning physical or financial capital Revenue income - CORRECT ANSWER Income from the goods in which the business trades Expenditure - CORRECT ANSWER An amount of money spent. Non current assets - CORRECT ANSWER Assets owned by a business that it expects to retain for one year or more Current assets - CORRECT ANSWER Cash and other assets expected to be exchanged for cash or consumed within a year Retained profit - CORRECT ANSWER Profit which is kept back in the business and used to pay for investment in the business. Sale of assets - CORRECT ANSWER when a business sells off its unwanted or unused assets to raise funds Crowd funding - CORRECT ANSWER Using social networking to appeal to potential investors Loans - CORRECT ANSWER amounts of money borrowed which will accumulate interest Venture capital - CORRECT ANSWER Invested money used for new business opportunities Debt factoring - CORRECT ANSWER The sale of a business' invoices to a third party. Trade credit - CORRECT ANSWER The practice of buying goods and services now and paying for them later Grant - CORRECT ANSWER A sum of money or other payment given for a particular purpose Donation - CORRECT ANSWER Money given to charity Break even point - CORRECT ANSWER point at which total revenue and total cost are equal Fixed costs - CORRECT ANSWER Costs that do not vary with the quantity of output produced Total costs - CORRECT ANSWER Fixed costs + variable costs Variable costs - CORRECT ANSWER Costs that vary directly with the level of production Selling price - CORRECT ANSWER the price paid by the customer for the product. Cash flow forecast - CORRECT ANSWER A projection, usually by week or month, of the likely cash inflows and outflows in a business Opening balance - CORRECT ANSWER The amount of money in a business at the start of the month Closing balance - CORRECT ANSWER Opening balance + net cash flow Depreciation - CORRECT ANSWER A decrease or loss in value Liquidity - CORRECT ANSWER Availability of resources to meet short-term cash requirements. Straight line depreciation - CORRECT ANSWER A constant amount of depreciation is subtracted from the value of the asset each year Reducing balance depreciation - CORRECT ANSWER Reducing the value by a certain percentage, making depreciation less each year Gross profit margin - CORRECT ANSWER Ratio of gross profit to net sales. Mark up - CORRECT ANSWER The amount added to the cost of a product to set the selling price. Net profit margin - CORRECT ANSWER Ratio of net income (gross sales minus expenses and taxes) to net sales. Return on capital employed - CORRECT ANSWER Net profit / capital employed x 100 Current ratio - CORRECT ANSWER Current assets/current liabilities Trade receivable days - CORRECT ANSWER The amount of time it takes debtors to pay bills Trade payable days - CORRECT ANSWER The amount of time it takes creditors to pay bills Inventory turnover - CORRECT ANSWER COGS/average inventory [Show More]

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