Gr 12 Math Lit: Ch 1 Sum Finance

What information is NOT typically found on a till slip?

VAT rate

Customer's name (correct)

Shop details

Item description

What is the primary purpose of checking calculations on a till slip?

To verify the shop's VAT number

To ensure the customer's details are correct

To detect any errors in item prices or VAT application (correct)

To calculate the total amount payable

What is the standard VAT rate in South Africa?

20%

12%

18%

15% (correct)

Which of the following items is exempt from VAT?

Maize meal Signup and view all the answers

What is the balance brought forward on an account statement?

The amount carried over from the previous statement Signup and view all the answers

What is the purpose of an account statement?

To provide a summary of transactions and balances Signup and view all the answers

What type of bill is typically used for charges such as water and electricity?

Municipal bill Signup and view all the answers

What is the consequence of not paying an account statement on time?

Interest rates are applied to the overdue payment Signup and view all the answers

What is the total deductions from the gross salary of R10,000?

R1,813.33 Signup and view all the answers

What is a tariff rate?

The amount by which the total cost changes per unit of usage Signup and view all the answers

What is the purpose of comparing tariff systems?

To identify the point at which one option becomes cheaper or more expensive than another Signup and view all the answers

What is the break-even point in break-even analysis?

The point where the total costs of two options are equal Signup and view all the answers

What is an income-and-expenditure statement?

A summary of all income received and expenses incurred over a specific period Signup and view all the answers

What is the purpose of a budget?

To guide financial decisions and ensure that spending aligns with income Signup and view all the answers

In comparing tariff systems, what is represented on the x-axis of a graph?

The number of units used Signup and view all the answers

What type of skill is essential in break-even analysis?

Performing calculations Signup and view all the answers

In which context would comparing electricity tariffs be useful?

Household projects Signup and view all the answers

What is a fixed amount in a tariff system?

A constant fee that must be paid regardless of usage Signup and view all the answers

What does the total amount on a cell phone bill include?

The base amount and VAT Signup and view all the answers

What is the purpose of checking the payment history on a cell phone bill?

To understand the impact of previous payments on the current balance Signup and view all the answers

What is the formula to calculate the interest in simple interest?

I = P × r × t Signup and view all the answers

What is the formula to calculate the amount accumulated in compound interest?

A = P × (1 + r/n)^(nt) Signup and view all the answers

What is the formula to calculate the VAT amount?

VAT Amount = Total Amount × (VAT Rate / (100 + VAT Rate)) Signup and view all the answers

What is the first step in verifying the accuracy of a financial document?

Verify information Signup and view all the answers

What is the gross salary?

The total amount earned in a month, including salary, overtime, and bonuses Signup and view all the answers

What is the formula to calculate the net salary?

Net Salary = Gross Salary - Deductions Signup and view all the answers

What is taxable income?

Gross income minus tax-deductible deductions Signup and view all the answers

What is the purpose of deduction tables in determining income tax?

To determine the amount of tax owed Signup and view all the answers

What is the purpose of the PAYE system?

To ensure that taxes are collected regularly throughout the year and avoid a large tax bill at the end of the tax year Signup and view all the answers

What is the tax bracket?

A range of taxable incomes charged at a specific tax rate Signup and view all the answers

What is the purpose of the IRP5 form?

To summarize an employee's total earnings, deductions, and tax deducted Signup and view all the answers

How is the UIF contribution calculated?

1% of the employee's gross salary Signup and view all the answers

What is the tax threshold for individuals younger than 65?

R67,111 Signup and view all the answers

What is the primary tax rebate amount?

R12,080 Signup and view all the answers

What is the purpose of the tax rebate?

To provide an amount deducted from the total tax payable Signup and view all the answers

What is the formula for calculating taxable income?

Taxable Income = Gross Income - Tax-Deductible Deductions Signup and view all the answers

What is the purpose of the UIF?

To provide short-term relief to workers when they become unemployed or are unable to work due to maternity, illness, or adoption leave Signup and view all the answers

What is the formula for calculating net pay?

Net Pay = Gross Salary - Deductions - Monthly Tax + Medical Tax Credits Signup and view all the answers

What is the primary purpose of a budget in an organization?

To outline how an organization plans to spend money to achieve its goals Signup and view all the answers

Which of the following is a feature of an income-and-expenditure statement?

Displays data for two different periods for comparison Signup and view all the answers

What is the main source of income for a small business?

Sales of goods or services Signup and view all the answers

What is the break-even point in a business?

The point at which income equals total costs Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements and budgets in small businesses?

To compare actual income and expenses against the budget Signup and view all the answers

What is a fixed cost in a business?

A regular, consistent cost such as rent and salaries Signup and view all the answers

What is the formula for calculating profit?

Profit = Total Income - Total Expenditure Signup and view all the answers

What is the importance of managing income and expenditure in a business?

It provides valuable insights for making informed financial decisions Signup and view all the answers

What is the purpose of preparing an income-and-expenditure statement in a small business?

To report actual expenditure and income Signup and view all the answers

What is a loss in a business?

A situation where total expenditure exceeds total income Signup and view all the answers

What is the primary purpose of a start-up cost?

To establish a business Signup and view all the answers

What is the definition of a break-even point?

The point where total income equals total costs Signup and view all the answers

What is the purpose of a budget?

To estimate expected costs and income Signup and view all the answers

What is the significance of the selling price?

It must cover all costs and generate a profit Signup and view all the answers

What is the purpose of an income-and-expenditure statement?

To report actual expenditure and income Signup and view all the answers

What is the key concept in managing cash flow?

Ensuring that there is enough cash to cover operating expenses Signup and view all the answers

What is the definition of interest?

The amount paid for borrowing money Signup and view all the answers

What is the loan amount?

The sale price minus the deposit Signup and view all the answers

What is the importance of matching costs with income?

To ensure that income matches or exceeds costs Signup and view all the answers

What is the purpose of regular analysis of income and expenditure statements?

To identify areas where costs can be reduced and income can be increased Signup and view all the answers

What is the main benefit of starting early with investments?

Greater accumulation due to the extended period of compounding interest Signup and view all the answers

What is the primary purpose of a fixed deposit account?

Investing a lump sum over a fixed period Signup and view all the answers

Which type of account is used for depositing and withdrawing money regularly?

Cheque or current account Signup and view all the answers

What is the effect of a higher interest rate on an investment?

Faster growth of the investment Signup and view all the answers

What is the purpose of a retirement annuity?

Providing income during retirement Signup and view all the answers

What is the term for interest calculated on the principal and accumulated interest?

Compound interest Signup and view all the answers

What is the benefit of regular contributions to an investment?

Enhancing the value of the investment over time due to compounding effects Signup and view all the answers

What is the purpose of a credit account?

Allowing purchasing items on credit, to be paid later Signup and view all the answers

What is the term for the initial amount invested?

Principal Signup and view all the answers

What is the purpose of monitoring interest rates when investing?

To achieve higher returns on investment Signup and view all the answers

What is the primary purpose of making a deposit when taking out a loan?

To reduce the loan amount and the interest paid Signup and view all the answers

What is the main difference between simple interest and compound interest?

The amount on which the interest is calculated Signup and view all the answers

What is the effect of a higher interest rate on a loan?

It increases the total cost of the loan Signup and view all the answers

What is the benefit of starting an investment early?

It allows for compounded interest to grow the investment Signup and view all the answers

What is the primary purpose of a retirement annuity?

To provide income during retirement Signup and view all the answers

What is the effect of a shorter loan term on the total interest paid?

It reduces the total interest paid Signup and view all the answers

What is the main benefit of a stokvel?

It benefits from bulk buying or shared interest Signup and view all the answers

What is the total repayment amount of a loan?

The sum of all monthly repayments over the loan term Signup and view all the answers

What is the effect of a higher monthly repayment amount on a loan?

It reduces the total interest paid Signup and view all the answers

What is the main difference between a loan and an investment?

The direction of the interest flow Signup and view all the answers

What is the main difference between simple interest and compound interest?

Simple interest is calculated on the original principal, while compound interest is calculated on the total amount borrowed. Signup and view all the answers

What is the result of total expenditure exceeding total income?

Loss Signup and view all the answers

What is the formula to calculate the inflation rate?

((Current Price - Previous Price) / Previous Price) x 100% Signup and view all the answers

What is the effect of inflation on savings and investments?

It erodes the value of money saved or invested if the return is lower than the inflation rate. Signup and view all the answers

What is demand-pull inflation?

A type of inflation caused by a mismatch between the demand and supply of goods and services. Signup and view all the answers

What is the purpose of adjusting for inflation in financial planning?

To ensure that salary or income growth keeps pace with inflation. Signup and view all the answers

What is the impact of inflation on the cost of living?

It decreases the purchasing power of money. Signup and view all the answers

What is the purpose of analyzing inflation trends in different contexts?

To understand the impact of inflation on personal finances and business decisions. Signup and view all the answers

What is the formula to calculate profit?

Total Income - Total Expenditure Signup and view all the answers

What is the result of total income exceeding total expenditure?

Profit Signup and view all the answers

What does the shop details section on a till slip typically include?

Name, address, and VAT number Signup and view all the answers

What is the purpose of checking the total calculation on a till slip?

To ensure the sum of item prices and VAT is correct Signup and view all the answers

What is typically included in an account statement?

Transactions, amounts due, due dates, and available credit Signup and view all the answers

What is the credit limit on an account statement?

The maximum amount of credit allowed Signup and view all the answers

What type of bill is used for charging services such as water and electricity?

Municipal bill Signup and view all the answers

Why is it essential to check calculations on financial documents?

To verify the total amount due and change given Signup and view all the answers

What is VAT (Value-Added Tax)?

A tax on goods and services Signup and view all the answers

What is the purpose of an account statement in terms of credit?

To allow purchases on credit with a balance to be paid off monthly Signup and view all the answers

What is the purpose of the IRP5 form?

To summarize total earnings and deductions for tax returns Signup and view all the answers

What is the tax threshold for individuals older than 75?

R117,111 Signup and view all the answers

What is the tertiary rebate amount?

R2,250 Signup and view all the answers

What is the purpose of the PAYE system?

To ensure taxes are collected regularly throughout the year Signup and view all the answers

What is the purpose of the UIF?

To provide short-term relief to workers when they become unemployed or are unable to work due to maternity, illness, or adoption leave Signup and view all the answers

What is the formula to calculate the taxable income?

Taxable Income = Gross Income - Tax-Deductible Deductions Signup and view all the answers

What is the purpose of tax rebates?

To decrease the tax payable Signup and view all the answers

What is the tax bracket?

A range of taxable incomes charged at a specific tax rate Signup and view all the answers

What is the purpose of verifying payment history on a cell phone bill?

To identify any disputes or errors in previous payments Signup and view all the answers

What is the purpose of determining the tax bracket?

To identify the correct tax rate for the taxable income Signup and view all the answers

What is the formula to calculate the amount accumulated in compound interest?

A = P × (1 + r/n)^(nt) Signup and view all the answers

What is the primary purpose of understanding taxation?

To understand how income tax is calculated and its implications on personal finance Signup and view all the answers

What is the formula to calculate the net pay?

Net Pay = Gross Salary - Deductions - Monthly Tax + Medical Tax Credits Signup and view all the answers

What is the formula to calculate the VAT amount?

VAT Amount = Total Amount × (VAT Rate / 100 + VAT Rate) Signup and view all the answers

What is the main purpose of comparing tariff systems?

To determine the cost-effectiveness of each option at different levels of usage Signup and view all the answers

What is the break-even point in break-even analysis?

The point where the total revenue equals the total cost Signup and view all the answers

What is the purpose of checking for exemptions from VAT on a bill?

To identify items that are not subject to VAT Signup and view all the answers

What is the purpose of deduction tables in determining income tax?

To quickly reference the amount of tax owed based on taxable income and age Signup and view all the answers

What is the primary purpose of an income-and-expenditure statement?

To summarize all income received and expenses incurred over a specific period Signup and view all the answers

What is the formula to calculate the net salary?

Net Salary = Gross Salary - Deductions Signup and view all the answers

What is a variable amount in a tariff system?

A fee that depends on the level of usage Signup and view all the answers

What is the primary purpose of checking calculations on a bill?

To ensure the total amount due is correct Signup and view all the answers

What is the purpose of drawing graphs in comparing tariff systems?

To visually compare the costs of different options Signup and view all the answers

What is the first step in verifying the accuracy of a financial document?

Verify information by checking that all required details are present Signup and view all the answers

What is the purpose of a budget?

To guide financial decisions and ensure that spending aligns with income Signup and view all the answers

What is the purpose of familiarity with key financial terms in understanding bills and account statements?

To comprehend the implications of financial terms on personal finance Signup and view all the answers

What is the fixed amount in a tariff system?

A constant fee that must be paid regardless of usage Signup and view all the answers

In which context would comparing transport tariffs be useful?

All of the above Signup and view all the answers

What skills are applied in creating and analyzing graphs in tariff systems?

Pattern, relationship, and representation skills Signup and view all the answers

What is the primary purpose of income-and-expenditure statements and budgets in small businesses?

To guide financial decisions and ensure that spending aligns with income Signup and view all the answers

What is the main purpose of a budget in an organization?

To outline projected income and expenditure Signup and view all the answers

What type of cost is rent in a small business?

Fixed cost Signup and view all the answers

What is the primary purpose of analyzing income-and-expenditure statements and budgets in small businesses?

To compare actual income and expenses against the budget Signup and view all the answers

What is the calculation for profit in a business?

Total Income - Total Expenditure Signup and view all the answers

Which of the following is a characteristic of an income-and-expenditure statement?

It shows actual income and expenditure over a given period Signup and view all the answers

What is the purpose of managing income and expenditure in a business?

To ensure financial planning and long-term success Signup and view all the answers

What type of cost is raw materials in a small business?

Variable cost Signup and view all the answers

What is the definition of a loss in a business?

When expenditure exceeds income Signup and view all the answers

What is the primary purpose of preparing an income-and-expenditure statement in a small business?

To report actual expenditure and income Signup and view all the answers

What type of cost is advertising in a small business?

Monthly operating cost Signup and view all the answers

What is the main difference between start-up costs and monthly operating costs?

Start-up costs are one-time expenses, while monthly operating costs are recurring expenses. Signup and view all the answers

What is the purpose of determining the break-even point?

To determine the point at which total income equals total costs. Signup and view all the answers

What is the importance of matching costs with income in a business?

To ensure that income matches or exceeds costs. Signup and view all the answers

What is the purpose of an income-and-expenditure statement?

To report actual income and expenditure over a specific period. Signup and view all the answers

What is the definition of production costs?

Day-to-day expenses directly related to producing goods or services. Signup and view all the answers

What is the importance of setting the right selling price?

To ensure that the selling price covers all costs and generates a profit. Signup and view all the answers

What is the purpose of analyzing income and expenditure statements?

To identify areas where costs can be reduced and income can be increased. Signup and view all the answers

What is the definition of a loan?

A lump sum borrowed from a bank or loan agent to make a large purchase. Signup and view all the answers

What is the importance of managing cash flow?

To ensure that there is enough cash to cover operating expenses. Signup and view all the answers

What is the purpose of preparing a budget?

To estimate expected income and expenditure based on historical data or similar businesses. Signup and view all the answers

What is the primary purpose of a Retirement Annuity?

To provide income during retirement Signup and view all the answers

What is the benefit of starting early with investments?

It leads to greater accumulation due to the extended period of compounding interest Signup and view all the answers

What is the primary difference between simple interest and compound interest?

Simple interest is calculated on the original principal, while compound interest is calculated on the current balance Signup and view all the answers

What is the formula to calculate the inflation rate?

(Current Price - Previous Price) / Previous Price Signup and view all the answers

What is the purpose of a Fixed Deposit Account?

For investing a lump sum over a fixed period Signup and view all the answers

What is the key feature of a Cheque or Current Account?

Access through bank branches, ATMs, internet banking, and cheques Signup and view all the answers

What is the result of inflation on the value of money?

It decreases the value of money Signup and view all the answers

What is the purpose of adjusting for inflation in financial planning?

To preserve the value of money Signup and view all the answers

What is the purpose of monitoring interest rates in investments?

To achieve higher returns on investment Signup and view all the answers

What is the impact of inflation on savings and investments?

It decreases the value of savings Signup and view all the answers

What is a key component of a bank statement?

The date of transaction Signup and view all the answers

What is a debit transaction on a bank statement?

An amount paid out of the account Signup and view all the answers

What is the purpose of cost of living adjustments?

To maintain the standard of living Signup and view all the answers

What is demand-pull inflation?

When the demand for goods and services exceeds supply Signup and view all the answers

How can banking fees be reduced?

By using own bank's ATMs and limiting over-the-counter transactions Signup and view all the answers

What is the primary purpose of a loan repayment strategy?

To minimize the loan term Signup and view all the answers

What is the primary purpose of financial planning in the context of inflation?

To maintain the purchasing power of money Signup and view all the answers

What is the benefit of compound interest?

It leads to exponential growth Signup and view all the answers

What is the effect of inflation on the cost of living?

It increases the cost of living Signup and view all the answers

What is the primary consequence of not adjusting for inflation in financial planning?

Erosion of the value of money Signup and view all the answers

What is the main difference between a loan and an investment?

A loan involves borrowing money with interest, while an investment involves placing money to earn interest. Signup and view all the answers

What is the effect of a higher interest rate on a loan?

It increases the total interest paid over the life of the loan. Signup and view all the answers

What is the benefit of starting to invest early?

It maximizes the benefits of compound interest. Signup and view all the answers

What is the effect of increasing the monthly repayment amount on a loan?

It decreases the total interest paid over the life of the loan. Signup and view all the answers

What is the purpose of a retirement annuity?

To provide income during retirement. Signup and view all the answers

What is the definition of compound interest?

Interest calculated on the current balance, including previous interest. Signup and view all the answers

What is the effect of a shorter loan term on the total interest paid?

It decreases the total interest paid over the life of the loan. Signup and view all the answers

What is the purpose of a stokvel?

To pool money for shared investments or purchases. Signup and view all the answers

What is the effect of a larger deposit on a loan?

It decreases the total interest paid over the life of the loan. Signup and view all the answers

What is the key factor that affects the growth of an investment?

The interest rate. Signup and view all the answers

What is the primary purpose of including the VAT number on a till slip?

To comply with South African tax regulations Signup and view all the answers

What is the purpose of calculating the credit available on an account statement?

To calculate the remaining credit limit after accounting for the current balance Signup and view all the answers

Which of the following is a characteristic of a municipal bill?

It is a charge for services such as water, electricity, and refuse removal Signup and view all the answers

What is the purpose of checking the total calculation on a till slip?

To ensure that the sum of item prices and the application of VAT where applicable is correct Signup and view all the answers

What is the impact of not paying an account statement on time?

Interest rates will be applied to late payments Signup and view all the answers

What is the purpose of verifying the item costs on a till slip?

To ensure that the unit prices of items are correct when given pack prices and quantities Signup and view all the answers

What is the purpose of including the invoice number on a till slip?

To identify the specific transaction and facilitate returns or refunds Signup and view all the answers

What is the purpose of checking the change calculation on a till slip?

To ensure that the change given back to the customer is correct when they pay more than the total amount due Signup and view all the answers

What is the primary purpose of verifying the total amount due on a cell phone bill?

To ensure the VAT rate has been correctly applied Signup and view all the answers

If the principal amount is R10,000, the annual interest rate is 10%, and the compounding frequency is 2, what is the amount accumulated after 5 years?

R16,289.06 Signup and view all the answers

What is the purpose of understanding the query period on a cell phone bill?

To identify the time allowed to dispute or question a bill Signup and view all the answers

If the gross salary is R12,000, the UIF contribution is 1%, the pension contribution is 5%, and the medical aid is 3%, what is the net salary?

R10,640 Signup and view all the answers

What is the purpose of calculating the taxable income?

To calculate the income tax owed Signup and view all the answers

What is the formula to calculate the VAT amount on a cell phone bill?

VAT Amount = Total Amount x (VAT Rate / (100 + VAT Rate)) Signup and view all the answers

What is the primary purpose of understanding the payment history on a cell phone bill?

To verify the calculations and ensure accuracy Signup and view all the answers

What is the purpose of calculating the average monthly cost on a cell phone bill?

To make informed decisions about future costs Signup and view all the answers

If the VAT rate is 15%, what is the VAT amount on a cell phone bill with a total amount of R1,000?

R142.86 Signup and view all the answers

What is the purpose of understanding the service providers and payment locations on a cell phone bill?

To know where to pay the bill and who to contact for queries Signup and view all the answers

What is the main purpose of comparing tariff systems?

To make an informed decision about which option is more cost-effective at different levels of usage Signup and view all the answers

What is the break-even point in break-even analysis?

The point where the total cost of two options is equal Signup and view all the answers

What is essential in determining the cost-effectiveness of each option at various usage levels?

Identifying the points of intersection on the graph Signup and view all the answers

What is the purpose of an income-and-expenditure statement?

To summarize all income received and expenses incurred over a specific period Signup and view all the answers

What is the purpose of a budget?

To estimate expected income and expenses for a future period Signup and view all the answers

What skills are applied to create and analyze graphs in tariff systems?

Skills from the 'patterns, relationships and representations' section of Mathematics Literacy Signup and view all the answers

What is the fixed amount in a tariff system?

A constant fee that must be paid regardless of usage Signup and view all the answers

What is the purpose of the primary rebate in the income tax system?

To provide a fixed deduction from the total tax payable Signup and view all the answers

What is essential in break-even analysis?

Performing accurate mathematical calculations Signup and view all the answers

What is the result of applying the tax bracket formula to the annual taxable income?

The net annual tax payable Signup and view all the answers

What is the relationship between the tax bracket and the tax rate?

The tax bracket is a range of taxable income with a fixed tax rate Signup and view all the answers

What is the importance of understanding the break-even point?

It helps in deciding which option is more cost-effective at different levels of usage Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements and budgets in small businesses?

To identify areas where costs can be reduced Signup and view all the answers

What is the purpose of the UIF contribution?

To provide short-term relief to workers when they become unemployed Signup and view all the answers

What is the correct sequence of steps in calculating the net pay?

Calculate taxable income, then determine the tax bracket, then calculate the annual tax, then apply rebates, then calculate the monthly tax, then determine the net pay Signup and view all the answers

What is the purpose of the IRP5 form?

To summarize the total earnings, deductions, and tax deducted Signup and view all the answers

What is the formula for calculating the taxable income?

Taxable Income = Gross Income - Tax-Deductible Deductions Signup and view all the answers

What is the result of subtracting the monthly tax from the gross salary?

The net pay Signup and view all the answers

What is the purpose of the PAYE system?

To ensure that taxes are collected regularly throughout the year Signup and view all the answers

What is the tax bracket for an individual with a taxable income of R120,000?

The tax bracket is determined by the tax tables Signup and view all the answers

What is the primary purpose of a budget in a small business?

To estimate expected costs and income based on historical data Signup and view all the answers

What type of costs are regular, consistent, and occur at the same amount every period?

Fixed costs Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements and budgets in larger organizations?

To understand and analyze the income-and-expenditure statements and budgets, focusing on broad categories and trends Signup and view all the answers

What is the formula for calculating profit?

Total Income - Total Expenditure Signup and view all the answers

What is the purpose of preparing an income-and-expenditure statement in a small business?

To report actual expenditure and income Signup and view all the answers

What is the importance of managing income and expenditure in a business?

To ensure the business is financially planning and allocating resources efficiently Signup and view all the answers

What is a loss in a business?

The financial gain when expenditure exceeds income Signup and view all the answers

What type of costs are incurred in producing goods or services?

Production costs Signup and view all the answers

What is the main source of income for a small business?

Sales of goods or services Signup and view all the answers

What is the purpose of comparing income-and-expenditure statements and budgets in small businesses?

To compare actual income and expenses against the budget to identify variances Signup and view all the answers

What is the effect of a higher interest rate on the total amount owed on a loan?

It increases the total amount owed Signup and view all the answers

What is the benefit of making higher monthly repayments on a loan?

It decreases the total interest paid Signup and view all the answers

What is the effect of a longer loan term on the total interest paid?

It increases the total interest paid Signup and view all the answers

What is the primary difference between simple interest and compound interest?

Simple interest is calculated on the original amount, while compound interest is calculated on the current balance Signup and view all the answers

What is the effect of a higher interest rate on an investment?

It increases the returns on the investment Signup and view all the answers

What is the benefit of starting an investment early?

It increases the returns on the investment due to compound interest Signup and view all the answers

What is the primary purpose of financial planning for loans and investments?

To balance monthly affordability with total cost for loans and maximize returns on investments Signup and view all the answers

What is the effect of a larger deposit on the total amount owed on a loan?

It decreases the total amount owed Signup and view all the answers

What is the primary difference between a loan and an investment?

A loan benefits the lender, while an investment benefits the investor Signup and view all the answers

What is the effect of a shorter loan term on the total interest paid?

It decreases the total interest paid Signup and view all the answers

What is the primary purpose of setting the right selling price in a small business?

To ensure the business makes a profit Signup and view all the answers

What is the main difference between a loan and an investment?

A loan is repaid with interest, while an investment generates interest Signup and view all the answers

What is the purpose of matching costs with income in a small business?

To ensure income exceeds costs and generates a profit Signup and view all the answers

What is the purpose of regularly analyzing income and expenditure statements in a small business?

To identify areas where costs can be reduced and income can be increased Signup and view all the answers

What is the definition of a production cost in a small business?

A day-to-day expense directly related to producing goods or services Signup and view all the answers

What is the purpose of a budget in a small business?

To estimate expected costs and income based on historical data or similar businesses Signup and view all the answers

What is the definition of a start-up cost in a small business?

A one-time expense incurred to establish a business Signup and view all the answers

What is the formula to calculate profit in a small business?

Profit = Total Income - Total Costs Signup and view all the answers

What is the importance of managing cash flow in a small business?

To ensure there is enough cash to cover operating expenses Signup and view all the answers

What is the definition of a loss in a small business?

A financial loss when total costs exceed total income Signup and view all the answers

What is the primary purpose of a retirement annuity?

To provide regular payments during retirement Signup and view all the answers

What is the effect of a higher interest rate on an investment?

It increases the growth of the investment Signup and view all the answers

What is the main benefit of making regular contributions to an investment?

It enhances the value of the investment over time Signup and view all the answers

What is the primary purpose of a cheque or current account?

To deposit and withdraw money regularly Signup and view all the answers

What is the purpose of a bank statement?

To provide a summary of all transactions over a specific period Signup and view all the answers

How can banking fees be reduced?

By limiting over-the-counter transactions and using electronic or ATM transactions Signup and view all the answers

What is the benefit of starting early with investments?

It allows for greater accumulation due to the extended period of compounding interest Signup and view all the answers

What is the purpose of a fixed deposit account?

To invest a lump sum over a fixed period Signup and view all the answers

What is the primary benefit of using a debit card?

It allows for direct deductions from the account Signup and view all the answers

What is the purpose of a loan repayment strategy?

To minimize the loan term and total interest paid Signup and view all the answers

What is the primary effect of inflation on savings?

It decreases the value of money Signup and view all the answers

What is the formula to calculate the inflation rate?

(Current Price - Previous Price) / Previous Price Signup and view all the answers

What is the result of adaptive expectations in the context of inflation?

All of the above Signup and view all the answers

What is the purpose of adjusting for inflation in financial planning?

To ensure income growth keeps pace with inflation Signup and view all the answers

What is the difference between simple interest and compound interest?

Simple interest is calculated on the principal, while compound interest is calculated on the current balance Signup and view all the answers

What is the result of cost-push inflation?

Higher production costs passed on to consumers Signup and view all the answers

What is the purpose of analyzing graphs and trends in the context of inflation?

To represent changes in the price level over time Signup and view all the answers

What is the definition of profit in a business?

Total income minus total expenditure Signup and view all the answers

What is the result of demand-pull inflation?

Higher prices due to excess demand Signup and view all the answers

What is the purpose of adjusting salaries and wages in the context of inflation?

To maintain living standards Signup and view all the answers

What is the primary purpose of verifying the total calculation on a till slip?

To determine the total amount payable by the customer Signup and view all the answers

What is the primary reason for checking the item costs on a till slip?

To calculate the unit price of each item Signup and view all the answers

What is the consequence of not paying an account statement on time?

Interest will be charged on the outstanding balance Signup and view all the answers

What is the purpose of a municipal bill?

To charge customers for services such as water and electricity Signup and view all the answers

What is the primary purpose of checking the change calculation on a till slip?

To ensure the customer receives the correct change Signup and view all the answers

What is the primary purpose of an account statement?

To allow customers to manage their credit accounts Signup and view all the answers

What is the primary purpose of checking the item details on a till slip?

To identify the goods or services purchased Signup and view all the answers

What is the primary purpose of verifying the payment history on an account statement?

To track the customer's payment history Signup and view all the answers

What is the main purpose of understanding the details of a cell phone bill?

To verify the accuracy of the total amount due and identify any potential discrepancies Signup and view all the answers

What is the main purpose of the tax rebate?

To reduce the tax payable for individuals who meet certain age criteria Signup and view all the answers

If a taxable income is R50,000 and the deductions are R10,000, what is the net salary?

R40,000 Signup and view all the answers

What is the primary purpose of calculating the average monthly cost based on historical data?

To identify trends in spending patterns Signup and view all the answers

What is the tax threshold for individuals aged 65-75?

R104,611 Signup and view all the answers

What is the purpose of the PAYE system?

To ensure that taxes are collected regularly throughout the year Signup and view all the answers

If a principal amount is R10,000, the rate of interest is 5% per annum, and the time is 2 years, what is the interest calculated using the simple interest formula?

R2,000 Signup and view all the answers

What is the primary purpose of understanding VAT on bills?

To calculate the total amount due including VAT Signup and view all the answers

What is the formula to calculate the taxable income?

Taxable Income = Gross Income - Tax-Deductible Deductions Signup and view all the answers

If a gross salary is R20,000, and the deductions are R5,000, what is the taxable income?

R18,000 Signup and view all the answers

What is the purpose of the IRP5 form?

To summarize the total earnings, deductions, and tax deducted Signup and view all the answers

What is the primary purpose of determining the query period on a cell phone bill?

To dispute the bill and query any discrepancies Signup and view all the answers

What is the secondary rebate amount?

R6,750 Signup and view all the answers

If a VAT rate is 15%, and the total amount is R10,000, what is the VAT amount?

R1,500 Signup and view all the answers

What is the formula to calculate the net pay?

Net Pay = Gross Salary - Deductions - Monthly Tax + Medical Tax Credits Signup and view all the answers

What is the primary purpose of understanding the payment history on a cell phone bill?

To verify the accuracy of the total amount due Signup and view all the answers

What is the purpose of the UIF?

To provide short-term relief to workers when they become unemployed or are unable to work due to maternity, illness, or adoption leave Signup and view all the answers

What is the primary purpose of calculating the area of a circle in financial calculations?

To identify trends in spending patterns Signup and view all the answers

What is the tax bracket?

A range of taxable incomes charged at a specific tax rate Signup and view all the answers

What is the purpose of determining the tax bracket?

To determine the tax rate applicable to the taxable income Signup and view all the answers

What is the primary purpose of tariff systems in financial decision-making?

To provide structured pricing plans for various services Signup and view all the answers

Which of the following is a key concept in break-even analysis?

Points of intersection Signup and view all the answers

What is the primary purpose of income-and-expenditure statements in financial decision-making?

To summarize income and expenses over a specific period Signup and view all the answers

What is the importance of comparing tariff systems in different contexts?

It enables informed decisions based on usage levels Signup and view all the answers

What is the primary purpose of analyzing income-and-expenditure statements and budgets in small businesses?

To identify areas for cost reduction and inform financial decisions Signup and view all the answers

What is the role of graphs in comparing tariff systems?

To visualize the cost-effectiveness of different options at various usage levels Signup and view all the answers

What is the importance of identifying points of intersection in break-even analysis?

It determines the cost-effectiveness of different options at various usage levels Signup and view all the answers

What is the primary purpose of a budget in an organization?

To guide financial decisions and ensure that spending aligns with income Signup and view all the answers

What is the role of mathematical calculations in break-even analysis?

To calculate the break-even point and determine the cost-effectiveness of different options Signup and view all the answers

What is the importance of understanding the concept of tariff systems in different contexts?

It is essential in making informed financial decisions based on usage levels Signup and view all the answers

What is the primary purpose of an income-and-expenditure statement in a small business?

To compare actual income and expenses against the budget Signup and view all the answers

What is the significance of a break-even point in a business?

It is the point at which income equals total costs Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements and budgets in small businesses?

To compare actual income and expenses against the budget and make adjustments Signup and view all the answers

What is the difference between a fixed cost and a variable cost in a business?

Fixed costs are regular and consistent, while variable costs are irregular and inconsistent Signup and view all the answers

What is the primary purpose of a start-up cost in a business?

To establish a business Signup and view all the answers

What is the significance of determining the correct selling price in a business?

To ensure profitability Signup and view all the answers

What is the formula for calculating profit in a business?

Profit = Total Income - Total Expenditure Signup and view all the answers

What is the importance of managing income and expenditure in a business?

It helps in making informed financial decisions and strategic planning Signup and view all the answers

What is the purpose of a budget in a small business?

To estimate expected costs and income Signup and view all the answers

What is the importance of analyzing income-and-expenditure statements in small businesses?

To identify areas where costs can be reduced and income can be increased Signup and view all the answers

What is the primary purpose of a budget in a small business?

To prepare for future expenses and manage resources Signup and view all the answers

What is the difference between a start-up cost and a monthly operating cost in a business?

Start-up costs are one-time expenses, while monthly operating costs are recurring expenses Signup and view all the answers

What is the primary source of income for a small business?

Sales of goods or services Signup and view all the answers

What is the purpose of setting the right selling price in a small business?

To cover all costs and generate a profit, while being competitive enough to attract customers Signup and view all the answers

What is the purpose of preparing an income-and-expenditure statement in a small business?

To report actual income and expenses Signup and view all the answers

What is the formula to calculate profit in a business?

Total Income - Total Costs Signup and view all the answers

What is a loss in a business?

A loss occurs when total expenditure exceeds total income Signup and view all the answers

What is the purpose of matching costs with income in a small business?

To make a profit by ensuring that income matches or exceeds costs Signup and view all the answers

What is a loss in a business?

A financial loss when total costs exceed total income Signup and view all the answers

What is the formula to calculate the break-even point in a business?

Income = Total Costs Signup and view all the answers

What is the main benefit of making a larger deposit when taking out a loan?

Reduced total interest paid Signup and view all the answers

What type of interest is calculated on the current balance, including previous interest?

Compound interest Signup and view all the answers

What is the primary benefit of starting an investment early?

Maximizing the benefits of compound interest Signup and view all the answers

What is the effect of a shorter loan term on the total interest paid?

Decreases the total interest paid Signup and view all the answers

What is the purpose of a retirement annuity?

To provide a monthly income during retirement Signup and view all the answers

What is the effect of a higher interest rate on a loan?

Increases the total interest paid Signup and view all the answers

What is the benefit of a stokvel investment?

Allows for bulk buying and shared interest Signup and view all the answers

What is the purpose of financial planning for loans?

To balance monthly affordability with total cost Signup and view all the answers

What is the effect of a higher monthly investment amount on the final investment value?

Increases the final investment value Signup and view all the answers

What is the primary difference between a loan and an investment?

A loan benefits the lender, while an investment benefits the investor Signup and view all the answers

What type of interest is calculated on the original principal only?

Simple Interest Signup and view all the answers

What is the financial gain when income exceeds expenditure?

Profit Signup and view all the answers

What is the primary benefit of investing in a retirement annuity?

Regular income during retirement Signup and view all the answers

What is the rate at which the general level of prices for goods and services rises?

Inflation Rate Signup and view all the answers

What is the effect of a higher interest rate on an investment?

Increases the growth of the investment Signup and view all the answers

What is the result of increased costs of production, such as higher wages and raw material prices?

Cost-Push Inflation Signup and view all the answers

What is the purpose of adjusting for inflation in financial planning?

To preserve the value of money Signup and view all the answers

What is the primary purpose of a fixed deposit account?

For investing a lump sum over a fixed period Signup and view all the answers

What is the impact of inflation on savings and investments?

It decreases the value of money Signup and view all the answers

What is the impact of regular contributions on an investment?

Enhances the value of the investment over time Signup and view all the answers

What is the purpose of analyzing inflation trends in graphs?

To show changes in prices over time Signup and view all the answers

What is the purpose of monitoring interest rates for investments?

To maximize the returns on investment Signup and view all the answers

What is the primary benefit of choosing a loan with a lower interest rate?

Minimizes the total cost of the loan Signup and view all the answers

What is the result of a decrease in purchasing power due to inflation?

A decrease in the value of money Signup and view all the answers

What is the purpose of comparing tariff systems?

To determine the best tariff system Signup and view all the answers

What is the impact of early investment on the growth of the investment?

Leads to greater accumulation due to the extended period of compounding interest Signup and view all the answers

What is the primary purpose of budgeting in personal finance?

To manage expenses and plan for the future Signup and view all the answers

What is the primary purpose of a bank statement?

To show the transaction history Signup and view all the answers

What is the primary benefit of using a debit card?

Allows direct deductions from the account Signup and view all the answers

What is the primary way to reduce banking fees?

Opt for electronic transactions Signup and view all the answers

Gr 12 Math Lit: Ch 1 Sum Finance

Questions and Answers

What information is NOT typically found on a till slip?

What is the primary purpose of checking calculations on a till slip?

What is the standard VAT rate in South Africa?

Which of the following items is exempt from VAT?

What is the balance brought forward on an account statement?

What is the purpose of an account statement?

What type of bill is typically used for charges such as water and electricity?

What is the consequence of not paying an account statement on time?

What is the total deductions from the gross salary of R10,000?

What is a tariff rate?

What is the purpose of comparing tariff systems?

What is the break-even point in break-even analysis?

What is an income-and-expenditure statement?

What is the purpose of a budget?

In comparing tariff systems, what is represented on the x-axis of a graph?

What type of skill is essential in break-even analysis?

In which context would comparing electricity tariffs be useful?

What is a fixed amount in a tariff system?

What does the total amount on a cell phone bill include?

What is the purpose of checking the payment history on a cell phone bill?

What is the formula to calculate the interest in simple interest?

What is the formula to calculate the amount accumulated in compound interest?

What is the formula to calculate the VAT amount?

What is the first step in verifying the accuracy of a financial document?

What is the gross salary?

What is the formula to calculate the net salary?

What is taxable income?

What is the purpose of deduction tables in determining income tax?

What is the purpose of the PAYE system?

What is the tax bracket?

What is the purpose of the IRP5 form?

How is the UIF contribution calculated?

What is the tax threshold for individuals younger than 65?

What is the primary tax rebate amount?

What is the purpose of the tax rebate?

What is the formula for calculating taxable income?

What is the purpose of the UIF?

What is the formula for calculating net pay?

What is the primary purpose of a budget in an organization?

Which of the following is a feature of an income-and-expenditure statement?

What is the main source of income for a small business?

What is the break-even point in a business?

What is the purpose of analyzing income-and-expenditure statements and budgets in small businesses?

What is a fixed cost in a business?

What is the formula for calculating profit?

What is the importance of managing income and expenditure in a business?

What is the purpose of preparing an income-and-expenditure statement in a small business?

What is a loss in a business?

What is the primary purpose of a start-up cost?

What is the definition of a break-even point?

What is the purpose of a budget?

What is the significance of the selling price?

What is the purpose of an income-and-expenditure statement?

What is the key concept in managing cash flow?

What is the definition of interest?

What is the loan amount?

What is the importance of matching costs with income?

What is the purpose of regular analysis of income and expenditure statements?

What is the main benefit of starting early with investments?

What is the primary purpose of a fixed deposit account?

Which type of account is used for depositing and withdrawing money regularly?

What is the effect of a higher interest rate on an investment?

What is the purpose of a retirement annuity?

What is the term for interest calculated on the principal and accumulated interest?

What is the benefit of regular contributions to an investment?

What is the purpose of a credit account?

What is the term for the initial amount invested?

What is the purpose of monitoring interest rates when investing?

What is the primary purpose of making a deposit when taking out a loan?

What is the main difference between simple interest and compound interest?

What is the effect of a higher interest rate on a loan?

What is the benefit of starting an investment early?

What is the primary purpose of a retirement annuity?

What is the effect of a shorter loan term on the total interest paid?

What is the main benefit of a stokvel?

What is the total repayment amount of a loan?

What is the effect of a higher monthly repayment amount on a loan?

What is the main difference between a loan and an investment?