Business
What is economics
Economics is the study of human and group activity related to work and the use of resources to achieve satisfaction
What is scarcity
Scarcity refers to limitations with insufficient resources, goods, or abilities to achieve the desired ends.
What is opportunity cost
Opportunity cost is the cost expressed in terms of the next best alternative sacrificed”
What is accounting
Opportunity cost is the cost expressed in terms of the next best alternative sacrificed”
What are 5 types of accounting
Financial Accounting
Management Accounting
Tax Accounting
Forensic Accounting
Auditing
What is an asset
An Asset is something a business or person owns that generates profit or has value.
What is a liability
A liability is a sum of money that a business or person owes.
Whats a wage?
Wage is generally a weekly input of payment by doing your job.
Whats a salary?
A salary is a annual income of payment, (your income from the year).
What is income
Income is money received on a regular basis, through work or through investments
What is commission
Commission is when your paid a percentage of of the value of the good they sell
What are expenses
Expenses are the costs incurred in or required for something, in a business expenses refer to the money spent and the costs incurred by pursuing revenue.
What are fixed expenses
Fixed expenses is regular payments where the amount paid doesn't vary with usage, e.g. rent or mortgage payment.
Variable expenses
Variable expenses are costs that change over time e.g groceries or movie tickets, as the cost of these items may fluctuate over time.
What is liquidity
Liquidity is an asset that can be sold quickly that maintains its value.
Whats the rate of return?
The Rate of return is the annual income you receive from an investment.
What is Capital growth
Capital growth is the increase of value with an investment or asset over a period of time.
What is a share
A share is a unit of equity or part ownership in a stock or business.
What is diversification?
Diversification is an investment strategy that lowers a portfolio's risk to help achieve more stable returns. You diversify by investing your money across different asset classes such as shares, property, bonds and private equity.
What is a term deposit
A term deposit is a cash investment held at a financial institution, which it is held for set period, if withdrawn before the period has expired a penalty will be attached with a sum of money lost.
What is a personal loan
A personal loan is when an individual borrows money for personal needs, including making investments in a company.
What is cryptocurrency
Crypto assets (crypto) also known as cryptocurrencies, coins or tokens are digital assets that do not have a physical form. They are often not backed by physical assets.
What is insurance?
Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company.
Whats a budget?
A budget is a planning device to help a person or business achieve their financial goals.
Whats a surplus
SURPLUS
If a consumer’s income is greater than their expenses, money can be saved and invested or they can spend more.
Whats a deficit
DEFICIT
If expenses are greater than income a consumer is overcommitted and needs to either earn more or spend less.
Whats a TFN
Your tax file number (TFN) is your personal reference number in the tax and super systems.
What is auditing
Verification of financial position as disclosed by the financial statements.