Gr 12 Math Lit: Ch 1 Sum Finance
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Questions and Answers

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?

    <p>Maize meal</p> Signup and view all the answers

    What is the balance brought forward on an account statement?

    <p>The amount carried over from the previous statement</p> Signup and view all the answers

    What is the purpose of an account statement?

    <p>To provide a summary of transactions and balances</p> Signup and view all the answers

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

    <p>Municipal bill</p> Signup and view all the answers

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

    <p>Interest rates are applied to the overdue payment</p> Signup and view all the answers

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

    <p>R1,813.33</p> Signup and view all the answers

    What is a tariff rate?

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

    What is the purpose of comparing tariff systems?

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

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

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

    What is an income-and-expenditure statement?

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

    What is the purpose of a budget?

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

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

    <p>The number of units used</p> Signup and view all the answers

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

    <p>Performing calculations</p> Signup and view all the answers

    In which context would comparing electricity tariffs be useful?

    <p>Household projects</p> Signup and view all the answers

    What is a fixed amount in a tariff system?

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

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

    <p>The base amount and VAT</p> Signup and view all the answers

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

    <p>To understand the impact of previous payments on the current balance</p> Signup and view all the answers

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

    <p>I = P × r × t</p> Signup and view all the answers

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

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

    What is the formula to calculate the VAT amount?

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

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

    <p>Verify information</p> Signup and view all the answers

    What is the gross salary?

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

    What is the formula to calculate the net salary?

    <p>Net Salary = Gross Salary - Deductions</p> Signup and view all the answers

    What is taxable income?

    <p>Gross income minus tax-deductible deductions</p> Signup and view all the answers

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

    <p>To determine the amount of tax owed</p> Signup and view all the answers

    What is the purpose of the PAYE system?

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

    What is the tax bracket?

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

    What is the purpose of the IRP5 form?

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

    How is the UIF contribution calculated?

    <p>1% of the employee's gross salary</p> Signup and view all the answers

    What is the tax threshold for individuals younger than 65?

    <p>R67,111</p> Signup and view all the answers

    What is the primary tax rebate amount?

    <p>R12,080</p> Signup and view all the answers

    What is the purpose of the tax rebate?

    <p>To provide an amount deducted from the total tax payable</p> Signup and view all the answers

    What is the formula for calculating taxable income?

    <p>Taxable Income = Gross Income - Tax-Deductible Deductions</p> Signup and view all the answers

    What is the purpose of the UIF?

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

    What is the formula for calculating net pay?

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

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

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

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

    <p>Displays data for two different periods for comparison</p> Signup and view all the answers

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

    <p>Sales of goods or services</p> Signup and view all the answers

    What is the break-even point in a business?

    <p>The point at which income equals total costs</p> Signup and view all the answers

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

    <p>To compare actual income and expenses against the budget</p> Signup and view all the answers

    What is a fixed cost in a business?

    <p>A regular, consistent cost such as rent and salaries</p> Signup and view all the answers

    What is the formula for calculating profit?

    <p>Profit = Total Income - Total Expenditure</p> Signup and view all the answers

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

    <p>It provides valuable insights for making informed financial decisions</p> Signup and view all the answers

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

    <p>To report actual expenditure and income</p> Signup and view all the answers

    What is a loss in a business?

    <p>A situation where total expenditure exceeds total income</p> Signup and view all the answers

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

    <p>To establish a business</p> Signup and view all the answers

    What is the definition of a break-even point?

    <p>The point where total income equals total costs</p> Signup and view all the answers

    What is the purpose of a budget?

    <p>To estimate expected costs and income</p> Signup and view all the answers

    What is the significance of the selling price?

    <p>It must cover all costs and generate a profit</p> Signup and view all the answers

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

    <p>To report actual expenditure and income</p> Signup and view all the answers

    What is the key concept in managing cash flow?

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

    What is the definition of interest?

    <p>The amount paid for borrowing money</p> Signup and view all the answers

    What is the loan amount?

    <p>The sale price minus the deposit</p> Signup and view all the answers

    What is the importance of matching costs with income?

    <p>To ensure that income matches or exceeds costs</p> Signup and view all the answers

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

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

    What is the main benefit of starting early with investments?

    <p>Greater accumulation due to the extended period of compounding interest</p> Signup and view all the answers

    What is the primary purpose of a fixed deposit account?

    <p>Investing a lump sum over a fixed period</p> Signup and view all the answers

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

    <p>Cheque or current account</p> Signup and view all the answers

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

    <p>Faster growth of the investment</p> Signup and view all the answers

    What is the purpose of a retirement annuity?

    <p>Providing income during retirement</p> Signup and view all the answers

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

    <p>Compound interest</p> Signup and view all the answers

    What is the benefit of regular contributions to an investment?

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

    What is the purpose of a credit account?

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

    What is the term for the initial amount invested?

    <p>Principal</p> Signup and view all the answers

    What is the purpose of monitoring interest rates when investing?

    <p>To achieve higher returns on investment</p> Signup and view all the answers

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

    <p>To reduce the loan amount and the interest paid</p> Signup and view all the answers

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

    <p>The amount on which the interest is calculated</p> Signup and view all the answers

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

    <p>It increases the total cost of the loan</p> Signup and view all the answers

    What is the benefit of starting an investment early?

    <p>It allows for compounded interest to grow the investment</p> Signup and view all the answers

    What is the primary purpose of a retirement annuity?

    <p>To provide income during retirement</p> Signup and view all the answers

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

    <p>It reduces the total interest paid</p> Signup and view all the answers

    What is the main benefit of a stokvel?

    <p>It benefits from bulk buying or shared interest</p> Signup and view all the answers

    What is the total repayment amount of a loan?

    <p>The sum of all monthly repayments over the loan term</p> Signup and view all the answers

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

    <p>It reduces the total interest paid</p> Signup and view all the answers

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

    <p>The direction of the interest flow</p> Signup and view all the answers

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

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

    What is the result of total expenditure exceeding total income?

    <p>Loss</p> Signup and view all the answers

    What is the formula to calculate the inflation rate?

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

    What is the effect of inflation on savings and investments?

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

    What is demand-pull inflation?

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

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

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

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

    <p>It decreases the purchasing power of money.</p> Signup and view all the answers

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

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

    What is the formula to calculate profit?

    <p>Total Income - Total Expenditure</p> Signup and view all the answers

    What is the result of total income exceeding total expenditure?

    <p>Profit</p> Signup and view all the answers

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

    <p>Name, address, and VAT number</p> Signup and view all the answers

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

    <p>To ensure the sum of item prices and VAT is correct</p> Signup and view all the answers

    What is typically included in an account statement?

    <p>Transactions, amounts due, due dates, and available credit</p> Signup and view all the answers

    What is the credit limit on an account statement?

    <p>The maximum amount of credit allowed</p> Signup and view all the answers

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

    <p>Municipal bill</p> Signup and view all the answers

    Why is it essential to check calculations on financial documents?

    <p>To verify the total amount due and change given</p> Signup and view all the answers

    What is VAT (Value-Added Tax)?

    <p>A tax on goods and services</p> Signup and view all the answers

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

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

    What is the purpose of the IRP5 form?

    <p>To summarize total earnings and deductions for tax returns</p> Signup and view all the answers

    What is the tax threshold for individuals older than 75?

    <p>R117,111</p> Signup and view all the answers

    What is the tertiary rebate amount?

    <p>R2,250</p> Signup and view all the answers

    What is the purpose of the PAYE system?

    <p>To ensure taxes are collected regularly throughout the year</p> Signup and view all the answers

    What is the purpose of the UIF?

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

    What is the formula to calculate the taxable income?

    <p>Taxable Income = Gross Income - Tax-Deductible Deductions</p> Signup and view all the answers

    What is the purpose of tax rebates?

    <p>To decrease the tax payable</p> Signup and view all the answers

    What is the tax bracket?

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

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

    <p>To identify any disputes or errors in previous payments</p> Signup and view all the answers

    What is the purpose of determining the tax bracket?

    <p>To identify the correct tax rate for the taxable income</p> Signup and view all the answers

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

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

    What is the primary purpose of understanding taxation?

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

    What is the formula to calculate the net pay?

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

    What is the formula to calculate the VAT amount?

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

    What is the main purpose of comparing tariff systems?

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

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

    <p>The point where the total revenue equals the total cost</p> Signup and view all the answers

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

    <p>To identify items that are not subject to VAT</p> Signup and view all the answers

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

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

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

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

    What is the formula to calculate the net salary?

    <p>Net Salary = Gross Salary - Deductions</p> Signup and view all the answers

    What is a variable amount in a tariff system?

    <p>A fee that depends on the level of usage</p> Signup and view all the answers

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

    <p>To ensure the total amount due is correct</p> Signup and view all the answers

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

    <p>To visually compare the costs of different options</p> Signup and view all the answers

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

    <p>Verify information by checking that all required details are present</p> Signup and view all the answers

    What is the purpose of a budget?

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

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

    <p>To comprehend the implications of financial terms on personal finance</p> Signup and view all the answers

    What is the fixed amount in a tariff system?

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

    In which context would comparing transport tariffs be useful?

    <p>All of the above</p> Signup and view all the answers

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

    <p>Pattern, relationship, and representation skills</p> Signup and view all the answers

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

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

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

    <p>To outline projected income and expenditure</p> Signup and view all the answers

    What type of cost is rent in a small business?

    <p>Fixed cost</p> Signup and view all the answers

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

    <p>To compare actual income and expenses against the budget</p> Signup and view all the answers

    What is the calculation for profit in a business?

    <p>Total Income - Total Expenditure</p> Signup and view all the answers

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

    <p>It shows actual income and expenditure over a given period</p> Signup and view all the answers

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

    <p>To ensure financial planning and long-term success</p> Signup and view all the answers

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

    <p>Variable cost</p> Signup and view all the answers

    What is the definition of a loss in a business?

    <p>When expenditure exceeds income</p> Signup and view all the answers

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

    <p>To report actual expenditure and income</p> Signup and view all the answers

    What type of cost is advertising in a small business?

    <p>Monthly operating cost</p> Signup and view all the answers

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

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

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

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

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

    <p>To ensure that income matches or exceeds costs.</p> Signup and view all the answers

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

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

    What is the definition of production costs?

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

    What is the importance of setting the right selling price?

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

    What is the purpose of analyzing income and expenditure statements?

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

    What is the definition of a loan?

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

    What is the importance of managing cash flow?

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

    What is the purpose of preparing a budget?

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

    What is the primary purpose of a Retirement Annuity?

    <p>To provide income during retirement</p> Signup and view all the answers

    What is the benefit of starting early with investments?

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

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

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

    What is the formula to calculate the inflation rate?

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

    What is the purpose of a Fixed Deposit Account?

    <p>For investing a lump sum over a fixed period</p> Signup and view all the answers

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

    <p>Access through bank branches, ATMs, internet banking, and cheques</p> Signup and view all the answers

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

    <p>It decreases the value of money</p> Signup and view all the answers

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

    <p>To preserve the value of money</p> Signup and view all the answers

    What is the purpose of monitoring interest rates in investments?

    <p>To achieve higher returns on investment</p> Signup and view all the answers

    What is the impact of inflation on savings and investments?

    <p>It decreases the value of savings</p> Signup and view all the answers

    What is a key component of a bank statement?

    <p>The date of transaction</p> Signup and view all the answers

    What is a debit transaction on a bank statement?

    <p>An amount paid out of the account</p> Signup and view all the answers

    What is the purpose of cost of living adjustments?

    <p>To maintain the standard of living</p> Signup and view all the answers

    What is demand-pull inflation?

    <p>When the demand for goods and services exceeds supply</p> Signup and view all the answers

    How can banking fees be reduced?

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

    What is the primary purpose of a loan repayment strategy?

    <p>To minimize the loan term</p> Signup and view all the answers

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

    <p>To maintain the purchasing power of money</p> Signup and view all the answers

    What is the benefit of compound interest?

    <p>It leads to exponential growth</p> Signup and view all the answers

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

    <p>It increases the cost of living</p> Signup and view all the answers

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

    <p>Erosion of the value of money</p> Signup and view all the answers

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

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

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

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

    What is the benefit of starting to invest early?

    <p>It maximizes the benefits of compound interest.</p> Signup and view all the answers

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

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

    What is the purpose of a retirement annuity?

    <p>To provide income during retirement.</p> Signup and view all the answers

    What is the definition of compound interest?

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

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

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

    What is the purpose of a stokvel?

    <p>To pool money for shared investments or purchases.</p> Signup and view all the answers

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

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

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

    <p>The interest rate.</p> Signup and view all the answers

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

    <p>To comply with South African tax regulations</p> Signup and view all the answers

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

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

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

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

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

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

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

    <p>Interest rates will be applied to late payments</p> Signup and view all the answers

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

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

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

    <p>To identify the specific transaction and facilitate returns or refunds</p> Signup and view all the answers

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

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

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

    <p>To ensure the VAT rate has been correctly applied</p> 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?

    <p>R16,289.06</p> Signup and view all the answers

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

    <p>To identify the time allowed to dispute or question a bill</p> 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?

    <p>R10,640</p> Signup and view all the answers

    What is the purpose of calculating the taxable income?

    <p>To calculate the income tax owed</p> Signup and view all the answers

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

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

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

    <p>To verify the calculations and ensure accuracy</p> Signup and view all the answers

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

    <p>To make informed decisions about future costs</p> 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?

    <p>R142.86</p> Signup and view all the answers

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

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

    What is the main purpose of comparing tariff systems?

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

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

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

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

    <p>Identifying the points of intersection on the graph</p> Signup and view all the answers

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

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

    What is the purpose of a budget?

    <p>To estimate expected income and expenses for a future period</p> Signup and view all the answers

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

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

    What is the fixed amount in a tariff system?

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

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

    <p>To provide a fixed deduction from the total tax payable</p> Signup and view all the answers

    What is essential in break-even analysis?

    <p>Performing accurate mathematical calculations</p> Signup and view all the answers

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

    <p>The net annual tax payable</p> Signup and view all the answers

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

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

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

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

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

    <p>To identify areas where costs can be reduced</p> Signup and view all the answers

    What is the purpose of the UIF contribution?

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

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

    <p>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</p> Signup and view all the answers

    What is the purpose of the IRP5 form?

    <p>To summarize the total earnings, deductions, and tax deducted</p> Signup and view all the answers

    What is the formula for calculating the taxable income?

    <p>Taxable Income = Gross Income - Tax-Deductible Deductions</p> Signup and view all the answers

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

    <p>The net pay</p> Signup and view all the answers

    What is the purpose of the PAYE system?

    <p>To ensure that taxes are collected regularly throughout the year</p> Signup and view all the answers

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

    <p>The tax bracket is determined by the tax tables</p> Signup and view all the answers

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

    <p>To estimate expected costs and income based on historical data</p> Signup and view all the answers

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

    <p>Fixed costs</p> Signup and view all the answers

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

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

    What is the formula for calculating profit?

    <p>Total Income - Total Expenditure</p> Signup and view all the answers

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

    <p>To report actual expenditure and income</p> Signup and view all the answers

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

    <p>To ensure the business is financially planning and allocating resources efficiently</p> Signup and view all the answers

    What is a loss in a business?

    <p>The financial gain when expenditure exceeds income</p> Signup and view all the answers

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

    <p>Production costs</p> Signup and view all the answers

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

    <p>Sales of goods or services</p> Signup and view all the answers

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

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

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

    <p>It increases the total amount owed</p> Signup and view all the answers

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

    <p>It decreases the total interest paid</p> Signup and view all the answers

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

    <p>It increases the total interest paid</p> Signup and view all the answers

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

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

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

    <p>It increases the returns on the investment</p> Signup and view all the answers

    What is the benefit of starting an investment early?

    <p>It increases the returns on the investment due to compound interest</p> Signup and view all the answers

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

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

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

    <p>It decreases the total amount owed</p> Signup and view all the answers

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

    <p>A loan benefits the lender, while an investment benefits the investor</p> Signup and view all the answers

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

    <p>It decreases the total interest paid</p> Signup and view all the answers

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

    <p>To ensure the business makes a profit</p> Signup and view all the answers

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

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

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

    <p>To ensure income exceeds costs and generates a profit</p> Signup and view all the answers

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

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

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

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

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

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

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

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

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

    <p>Profit = Total Income - Total Costs</p> Signup and view all the answers

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

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

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

    <p>A financial loss when total costs exceed total income</p> Signup and view all the answers

    What is the primary purpose of a retirement annuity?

    <p>To provide regular payments during retirement</p> Signup and view all the answers

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

    <p>It increases the growth of the investment</p> Signup and view all the answers

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

    <p>It enhances the value of the investment over time</p> Signup and view all the answers

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

    <p>To deposit and withdraw money regularly</p> Signup and view all the answers

    What is the purpose of a bank statement?

    <p>To provide a summary of all transactions over a specific period</p> Signup and view all the answers

    How can banking fees be reduced?

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

    What is the benefit of starting early with investments?

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

    What is the purpose of a fixed deposit account?

    <p>To invest a lump sum over a fixed period</p> Signup and view all the answers

    What is the primary benefit of using a debit card?

    <p>It allows for direct deductions from the account</p> Signup and view all the answers

    What is the purpose of a loan repayment strategy?

    <p>To minimize the loan term and total interest paid</p> Signup and view all the answers

    What is the primary effect of inflation on savings?

    <p>It decreases the value of money</p> Signup and view all the answers

    What is the formula to calculate the inflation rate?

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

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>To ensure income growth keeps pace with inflation</p> Signup and view all the answers

    What is the difference between simple interest and compound interest?

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

    What is the result of cost-push inflation?

    <p>Higher production costs passed on to consumers</p> Signup and view all the answers

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

    <p>To represent changes in the price level over time</p> Signup and view all the answers

    What is the definition of profit in a business?

    <p>Total income minus total expenditure</p> Signup and view all the answers

    What is the result of demand-pull inflation?

    <p>Higher prices due to excess demand</p> Signup and view all the answers

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

    <p>To maintain living standards</p> Signup and view all the answers

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

    <p>To determine the total amount payable by the customer</p> Signup and view all the answers

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

    <p>To calculate the unit price of each item</p> Signup and view all the answers

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

    <p>Interest will be charged on the outstanding balance</p> Signup and view all the answers

    What is the purpose of a municipal bill?

    <p>To charge customers for services such as water and electricity</p> Signup and view all the answers

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

    <p>To ensure the customer receives the correct change</p> Signup and view all the answers

    What is the primary purpose of an account statement?

    <p>To allow customers to manage their credit accounts</p> Signup and view all the answers

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

    <p>To identify the goods or services purchased</p> Signup and view all the answers

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

    <p>To track the customer's payment history</p> Signup and view all the answers

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

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

    What is the main purpose of the tax rebate?

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

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

    <p>R40,000</p> Signup and view all the answers

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

    <p>To identify trends in spending patterns</p> Signup and view all the answers

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

    <p>R104,611</p> Signup and view all the answers

    What is the purpose of the PAYE system?

    <p>To ensure that taxes are collected regularly throughout the year</p> 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?

    <p>R2,000</p> Signup and view all the answers

    What is the primary purpose of understanding VAT on bills?

    <p>To calculate the total amount due including VAT</p> Signup and view all the answers

    What is the formula to calculate the taxable income?

    <p>Taxable Income = Gross Income - Tax-Deductible Deductions</p> Signup and view all the answers

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

    <p>R18,000</p> Signup and view all the answers

    What is the purpose of the IRP5 form?

    <p>To summarize the total earnings, deductions, and tax deducted</p> Signup and view all the answers

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

    <p>To dispute the bill and query any discrepancies</p> Signup and view all the answers

    What is the secondary rebate amount?

    <p>R6,750</p> Signup and view all the answers

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

    <p>R1,500</p> Signup and view all the answers

    What is the formula to calculate the net pay?

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

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

    <p>To verify the accuracy of the total amount due</p> Signup and view all the answers

    What is the purpose of the UIF?

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

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

    <p>To identify trends in spending patterns</p> Signup and view all the answers

    What is the tax bracket?

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

    What is the purpose of determining the tax bracket?

    <p>To determine the tax rate applicable to the taxable income</p> Signup and view all the answers

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

    <p>To provide structured pricing plans for various services</p> Signup and view all the answers

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

    <p>Points of intersection</p> Signup and view all the answers

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

    <p>To summarize income and expenses over a specific period</p> Signup and view all the answers

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

    <p>It enables informed decisions based on usage levels</p> Signup and view all the answers

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

    <p>To identify areas for cost reduction and inform financial decisions</p> Signup and view all the answers

    What is the role of graphs in comparing tariff systems?

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

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

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

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

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

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

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

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

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

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

    <p>To compare actual income and expenses against the budget</p> Signup and view all the answers

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

    <p>It is the point at which income equals total costs</p> Signup and view all the answers

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

    <p>To compare actual income and expenses against the budget and make adjustments</p> Signup and view all the answers

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

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

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

    <p>To establish a business</p> Signup and view all the answers

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

    <p>To ensure profitability</p> Signup and view all the answers

    What is the formula for calculating profit in a business?

    <p>Profit = Total Income - Total Expenditure</p> Signup and view all the answers

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

    <p>It helps in making informed financial decisions and strategic planning</p> Signup and view all the answers

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

    <p>To estimate expected costs and income</p> Signup and view all the answers

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

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

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

    <p>To prepare for future expenses and manage resources</p> Signup and view all the answers

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

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

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

    <p>Sales of goods or services</p> Signup and view all the answers

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

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

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

    <p>To report actual income and expenses</p> Signup and view all the answers

    What is the formula to calculate profit in a business?

    <p>Total Income - Total Costs</p> Signup and view all the answers

    What is a loss in a business?

    <p>A loss occurs when total expenditure exceeds total income</p> Signup and view all the answers

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

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

    What is a loss in a business?

    <p>A financial loss when total costs exceed total income</p> Signup and view all the answers

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

    <p>Income = Total Costs</p> Signup and view all the answers

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

    <p>Reduced total interest paid</p> Signup and view all the answers

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

    <p>Compound interest</p> Signup and view all the answers

    What is the primary benefit of starting an investment early?

    <p>Maximizing the benefits of compound interest</p> Signup and view all the answers

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

    <p>Decreases the total interest paid</p> Signup and view all the answers

    What is the purpose of a retirement annuity?

    <p>To provide a monthly income during retirement</p> Signup and view all the answers

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

    <p>Increases the total interest paid</p> Signup and view all the answers

    What is the benefit of a stokvel investment?

    <p>Allows for bulk buying and shared interest</p> Signup and view all the answers

    What is the purpose of financial planning for loans?

    <p>To balance monthly affordability with total cost</p> Signup and view all the answers

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

    <p>Increases the final investment value</p> Signup and view all the answers

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

    <p>A loan benefits the lender, while an investment benefits the investor</p> Signup and view all the answers

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

    <p>Simple Interest</p> Signup and view all the answers

    What is the financial gain when income exceeds expenditure?

    <p>Profit</p> Signup and view all the answers

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

    <p>Regular income during retirement</p> Signup and view all the answers

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

    <p>Inflation Rate</p> Signup and view all the answers

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

    <p>Increases the growth of the investment</p> Signup and view all the answers

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

    <p>Cost-Push Inflation</p> Signup and view all the answers

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

    <p>To preserve the value of money</p> Signup and view all the answers

    What is the primary purpose of a fixed deposit account?

    <p>For investing a lump sum over a fixed period</p> Signup and view all the answers

    What is the impact of inflation on savings and investments?

    <p>It decreases the value of money</p> Signup and view all the answers

    What is the impact of regular contributions on an investment?

    <p>Enhances the value of the investment over time</p> Signup and view all the answers

    What is the purpose of analyzing inflation trends in graphs?

    <p>To show changes in prices over time</p> Signup and view all the answers

    What is the purpose of monitoring interest rates for investments?

    <p>To maximize the returns on investment</p> Signup and view all the answers

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

    <p>Minimizes the total cost of the loan</p> Signup and view all the answers

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

    <p>A decrease in the value of money</p> Signup and view all the answers

    What is the purpose of comparing tariff systems?

    <p>To determine the best tariff system</p> Signup and view all the answers

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

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

    What is the primary purpose of budgeting in personal finance?

    <p>To manage expenses and plan for the future</p> Signup and view all the answers

    What is the primary purpose of a bank statement?

    <p>To show the transaction history</p> Signup and view all the answers

    What is the primary benefit of using a debit card?

    <p>Allows direct deductions from the account</p> Signup and view all the answers

    What is the primary way to reduce banking fees?

    <p>Opt for electronic transactions</p> Signup and view all the answers

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