Podcast
Questions and Answers
Which of the following would NOT be considered a non-current asset?
Which of the following would NOT be considered a non-current asset?
- Inventory (correct)
- Vehicles
- Land
- Equipment
What is the primary characteristic of intangible assets?
What is the primary characteristic of intangible assets?
- They can be physically touched.
- They are not recognized in financial statements.
- They have a physical form.
- They add value but cannot be touched. (correct)
Which type of expenditure is NOT typically classified as revenue expenditure?
Which type of expenditure is NOT typically classified as revenue expenditure?
- Insurance premiums
- Purchase of a new building (correct)
- Rent payments
- Salaries and wages
How are net current assets calculated?
How are net current assets calculated?
What does retained profit specifically contribute to in a business?
What does retained profit specifically contribute to in a business?
What is the definition of capital income?
What is the definition of capital income?
Which of the following methods of communication allows customers to conduct banking transactions using a physical location?
Which of the following methods of communication allows customers to conduct banking transactions using a physical location?
What characterizes revenue income?
What characterizes revenue income?
Which organization provides free and impartial financial advice in the UK?
Which organization provides free and impartial financial advice in the UK?
What type of expenditure is used to purchase long-term assets for a business?
What type of expenditure is used to purchase long-term assets for a business?
Which professional offers independent advice on managing debt?
Which professional offers independent advice on managing debt?
What is included in capital income?
What is included in capital income?
What distinguishes mobile banking from other banking methods?
What distinguishes mobile banking from other banking methods?
Flashcards
Branch (banking)
Branch (banking)
A physical location where customers can conduct banking transactions.
Online banking
Online banking
Using the internet for banking transactions.
Accounting
Accounting
Recording financial transactions and using them to create financial reports.
Revenue income
Revenue income
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Capital income
Capital income
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Expenditure
Expenditure
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Capital expenditure
Capital expenditure
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Income
Income
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Non-current assets
Non-current assets
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Intangible assets
Intangible assets
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Revenue expenditure
Revenue expenditure
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Net current assets
Net current assets
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Retained profit
Retained profit
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Study Notes
Customer Communication Methods
- Branch: A physical location for customer transactions.
- Online Banking: Using the internet for banking.
- Telephone Banking: Using a phone for transactions, potentially automated or with advisors.
- Mobile Banking: Using mobile devices for financial transactions.
Financial Information and Guidance Providers
- Citizens Advice: A charity offering financial and non-financial advice.
- Independent Financial Advisor (IFA): Professionals providing independent financial guidance (e.g., savings, mortgages, investments).
- Price Comparison Sites: Websites comparing prices for goods and services.
- Money Advice Service: A government-funded UK service providing free and impartial financial advice.
- Debt Counsellors: Professionals offering advice on managing debt.
- Individual Voluntary Arrangements (IVAs) Bankruptcy: A government program allowing individuals to declare bankruptcy while potentially paying creditors.
Business Finance - Accounting
- Accounting: Recording financial transactions, both planned and actual, to produce financial information.
- Income: Money coming into a business.
- Capital Income: Money invested in setting up or expanding a business (e.g., loans, mortgages, shares, owner's capital, debentures).
- Revenue Income: Money from daily business operations (e.g., sales, rent, commissions, interest, discounts).
- Expenditure: Money spent by a business.
- Capital Expenditure: Spending on assets lasting a long time.
- Non-Current Assets: Tangible long-term assets (e.g., land, buildings, equipment, vehicles).
- Intangible Assets: Non-physical assets adding value (e.g., goodwill, patents, trademarks, brand names).
- Revenue Expenditure: Day-to-day spending (e.g., inventory, rent, salaries, wages, depreciation, interest paid).
Business Finance - Sources of Funds
- Retained Profit: Profits kept in the business for further investment.
- Net Current Assets: Current assets minus current liabilities, showing funds for daily operations.
- Sale of Assets: Selling assets to generate cash.
- Owner's Capital: Money invested by the business owner.
- Loans: Borrowed money from a financial institution for a specific purpose and period.
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