Gr 11 Math Lit: Ch 3 Sum Finance
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Questions and Answers

What is the formula to calculate the employee's contribution to UIF?

  • 0.5% × gross salary
  • 1% × gross salary (correct)
  • 2% × gross salary
  • 1.5% × gross salary

What is the maximum UIF amount that can be deducted from an employee's salary?

  • R124.78 (correct)
  • R1,247.80
  • R12,478.00
  • R2,495.60

What is the purpose of an exchange rate?

  • To determine the value of a currency
  • To determine the strength of a currency
  • To compare the value of one currency to another (correct)
  • To calculate the UIF contribution

What is the formula to calculate the total UIF contribution?

<p>2% × gross salary (C)</p> Signup and view all the answers

What is the purpose of the accurate calculation method in currency conversions?

<p>To precisely calculate the exchanged amount for business transactions (B)</p> Signup and view all the answers

What is the salary ceiling for calculating UIF?

<p>R12,478.00 (B)</p> Signup and view all the answers

What determines the strength of a currency in relation to another currency?

<p>The exchange rate (C)</p> Signup and view all the answers

What is the formula to calculate the converted amount in a currency conversion?

<p>Foreign currency amount × Exchange rate (A)</p> Signup and view all the answers

Why is the estimation method used in currency conversions?

<p>To estimate the exchanged amount for travelers (B)</p> Signup and view all the answers

What is the purpose of UIF?

<p>To provide a fund for employees who are unemployed (C)</p> Signup and view all the answers

What is the formula to calculate Net Pay?

<p>Net Pay = Gross Salary - Total Deductions (C)</p> Signup and view all the answers

What is the purpose of a budget?

<p>To create a plan for allocating income (B)</p> Signup and view all the answers

What is Unearned Income?

<p>Income received from sources other than employment (B)</p> Signup and view all the answers

What is the purpose of identifying all sources of income?

<p>To understand and manage sources of income (D)</p> Signup and view all the answers

What is the term for setting aside a portion of income for future use or emergencies?

<p>Savings (D)</p> Signup and view all the answers

What is Gross Income?

<p>The total income earned before any deductions or taxes (D)</p> Signup and view all the answers

What is the purpose of filing taxes?

<p>To declare income to the tax authorities (A)</p> Signup and view all the answers

What is the term for using income to purchase assets that can generate additional income or appreciate in value over time?

<p>Investments (B)</p> Signup and view all the answers

What is the purpose of calculating Net Income?

<p>To understand how much income is available for spending (A)</p> Signup and view all the answers

What is the term for creating a plan for how to allocate income to cover expenses, savings, and investments?

<p>Budgeting (D)</p> Signup and view all the answers

What is the primary purpose of a budget?

<p>To plan the future finances of an event, business, or organization (B)</p> Signup and view all the answers

What is the difference between a budget and a statement of income-and-expenditure?

<p>A budget predicts income and expenditure, while a statement shows actual values (D)</p> Signup and view all the answers

What is the formula for calculating total expenditure?

<p>Total Expenditure = ∑ All Expense Items (D)</p> Signup and view all the answers

What is the purpose of UIF?

<p>To provide financial support to employees who lose their jobs (C)</p> Signup and view all the answers

What is the formula for calculating net income?

<p>Net Income = Total Income - Total Expenditure (B)</p> Signup and view all the answers

What is the importance of comparing predicted and actual values?

<p>To see how the business actually performed versus how it was planned or predicted to perform (B)</p> Signup and view all the answers

What is the formula for calculating the percentage change in expenditure?

<p>Percentage Change = (Actual Value - Previous Value) / Previous Value (C)</p> Signup and view all the answers

Why is it important to set financial goals?

<p>To create a plan to achieve financial goals (B)</p> Signup and view all the answers

What is the importance of monitoring and adjusting a budget?

<p>To regularly review income and expenses to ensure the budget is being followed (D)</p> Signup and view all the answers

What is the purpose of a plan for taxes?

<p>To ensure compliance with tax laws (A)</p> Signup and view all the answers

What is the term for the employee's salary excluding any additional income or deductions?

<p>Basic Salary (C)</p> Signup and view all the answers

What is the purpose of a quotation?

<p>To provide a guideline of all the costs that a customer will have to pay (C)</p> Signup and view all the answers

What is the formula to calculate the Gross Salary?

<p>Gross Salary = Basic Salary + Additional Incomes (B)</p> Signup and view all the answers

What is the term used to describe a currency that exchanges for less than one unit of another currency?

<p>Weak currency (D)</p> Signup and view all the answers

What is the term for the portion of an employee's salary on which tax is calculated?

<p>Taxable Income (D)</p> Signup and view all the answers

What is the primary purpose of a tariff system?

<p>To charge different rates for different quantities of a product (B)</p> Signup and view all the answers

What is the purpose of a receipt?

<p>To provide proof that a customer has paid for an item/service (B)</p> Signup and view all the answers

What is the graphical representation of a tariff system?

<p>Step-function graph (B)</p> Signup and view all the answers

What is the formula to calculate the Total Deductions?

<p>Total Deductions = Sum of All Deduction Values (D)</p> Signup and view all the answers

How do you determine the break-even point in a tariff system?

<p>By finding the intersection of the graphs (B)</p> Signup and view all the answers

What is the formula for calculating the monthly cost in a non-prepaid electricity tariff system?

<p>Service Charge + Network Charge + Rate per Unit x Units Used (D)</p> Signup and view all the answers

What is the difference between the Gross Salary and the Total Deductions called?

<p>Net Pay (A)</p> Signup and view all the answers

What do flat line sections on a graph represent in a tariff system?

<p>Fixed rates for usage within a specific range (D)</p> Signup and view all the answers

What is the document that provides a summary of all the costs that a customer must pay?

<p>Invoice (B)</p> Signup and view all the answers

What is the formula for calculating the percentage increase?

<p>((New Value - Old Value) / Old Value) x 100 (A)</p> Signup and view all the answers

What is the first step in comparing two options?

<p>Identifying the options (A)</p> Signup and view all the answers

What is the purpose of a cost-benefit analysis?

<p>To compare the benefits in relation to the costs (A)</p> Signup and view all the answers

What is the purpose of a risk assessment?

<p>To evaluate the potential risks associated with each option (D)</p> Signup and view all the answers

What is the break-even point in a business?

<p>The point where the business covers all expenses incurred (D)</p> Signup and view all the answers

What is the formula to calculate the total cost of a batch?

<p>Total Cost of Batch = Sum of Cost of Each Ingredient or Material (D)</p> Signup and view all the answers

What is the cost price per item?

<p>Total Cost of Batch divided by the number of items in the batch (C)</p> Signup and view all the answers

What is the graphical representation of the break-even point?

<p>The intersection of two graphs: one for costs and one for income (A)</p> Signup and view all the answers

What are the two components of the break-even value?

<p>Horizontal Axis Value and Vertical Axis Value (D)</p> Signup and view all the answers

What is the method of determining the break-even value by drawing graphs?

<p>Graphical Representation Method (D)</p> Signup and view all the answers

What is the formula to calculate the income?

<p>Selling Price per Unit multiplied by Number of Units Sold (D)</p> Signup and view all the answers

What is the formula to calculate the total cost?

<p>Fixed Costs plus Variable Cost per Unit multiplied by Number of Units Sold (C)</p> Signup and view all the answers

What is the break-even quantity?

<p>The number of units that must be sold to cover all costs (C)</p> Signup and view all the answers

What is the method of determining the break-even value by using equations?

<p>Equation Method (B)</p> Signup and view all the answers

What is the formula to calculate Net Income?

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

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

<p>Compound interest is calculated on the principal plus any accumulated interest (A)</p> Signup and view all the answers

What is the formula to calculate the total amount in a compound interest scenario?

<p>P × (1 + r) ^ t (D)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values in budgeting?

<p>To determine the accuracy of predictions (C)</p> Signup and view all the answers

What is the characteristic of a compound interest graph?

<p>A curve showing exponential growth (B)</p> Signup and view all the answers

What is the formula to calculate the difference between predicted and actual values?

<p>Actual Value - Predicted Value (A)</p> Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements?

<p>To understand the financial performance over a specific period (B)</p> Signup and view all the answers

How is interest calculated in a transactional account?

<p>Daily based on the balance at the end of each day (D)</p> Signup and view all the answers

What is the formula to calculate the change in value over time?

<p>Value in Later Period - Value in Earlier Period (D)</p> Signup and view all the answers

What is the total cost of a hire purchase agreement?

<p>The sum of the deposit, all payments, and any interest or fees (B)</p> Signup and view all the answers

What is the purpose of a fixed deposit account?

<p>To invest money for a set period and earn interest (B)</p> Signup and view all the answers

What is the cost price of an item?

<p>The total cost involved in making the item (D)</p> Signup and view all the answers

What is the difference between a loan and a hire purchase agreement?

<p>A loan is a sum of money borrowed, while a hire purchase agreement is an item bought on credit (D)</p> Signup and view all the answers

What is the formula to calculate the cost of a specific quantity needed?

<p>(Quantity Needed / Packet Size) x Packet Price (A)</p> Signup and view all the answers

What is the selling price of an item?

<p>The price at which an item is sold (D)</p> Signup and view all the answers

What is the formula for calculating the fee in a bank fee structure, where the fee is a fixed cost plus a percentage of the transaction value?

<p>Fee = Fixed cost + (Percentage of transaction value) (A)</p> Signup and view all the answers

Why is it necessary to adjust the cost price?

<p>To cover other costs not considered (C)</p> Signup and view all the answers

What is the main difference between a fixed deposit account and a transactional account?

<p>The balance can change regularly in a transactional account (A)</p> Signup and view all the answers

What is the purpose of comparing the selling price with market prices?

<p>To set a competitive price (D)</p> Signup and view all the answers

What is the purpose of interest in a loan or hire purchase agreement?

<p>To increase the total cost of the loan or agreement (B)</p> Signup and view all the answers

What is the primary purpose of using mathematical tools and techniques in decision-making?

<p>To organize and visualize data to make an informed decision (A)</p> Signup and view all the answers

Which of the following is a key feature of a budget?

<p>Evaluating predicted versus actual values to assess performance (D)</p> Signup and view all the answers

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

<p>To describe what has actually been spent and earned (D)</p> Signup and view all the answers

Which step in the decision-making process involves calculating the total cost of each option?

<p>Analyse Costs (A)</p> Signup and view all the answers

What is the purpose of establishing criteria in the decision-making process?

<p>To determine the criteria that will be used to compare the options (D)</p> Signup and view all the answers

What is the term for the difference between total income and total expenditure in a statement of income-and-expenditure?

<p>Net income (A)</p> Signup and view all the answers

Which of the following is a component of a budget?

<p>Predicted values (D)</p> Signup and view all the answers

What is the purpose of comparing the total costs, benefits, and risks of each option in the decision-making process?

<p>To make an informed decision about which option is more advantageous (C)</p> Signup and view all the answers

What is the term for the process of evaluating the potential risks of each option in the decision-making process?

<p>Assessing risks (C)</p> Signup and view all the answers

What is the primary purpose of documenting the decision-making process?

<p>To present the findings in a clear and logical manner (D)</p> Signup and view all the answers

What is the portion of an employee's salary that is subject to tax?

<p>Taxable Income (D)</p> Signup and view all the answers

What is the purpose of a quotation?

<p>To provide a guideline of all costs that a customer will have to pay (B)</p> Signup and view all the answers

What is the difference between Gross Salary and Net Pay?

<p>Total Deductions (C)</p> Signup and view all the answers

What is the document that provides a summary of all costs that a customer must pay?

<p>Invoice (A)</p> Signup and view all the answers

What is the term for the employee's salary excluding any additional income or deductions?

<p>Basic Salary (C)</p> Signup and view all the answers

What is the formula to calculate Gross Salary?

<p>Basic Salary + Additional Incomes (B)</p> Signup and view all the answers

What is the formula to calculate Total Deductions?

<p>Sum of All Deduction Values (A)</p> Signup and view all the answers

What is the document that provides proof that a customer has paid for an item/service?

<p>Receipt (A)</p> Signup and view all the answers

What is the primary purpose of identifying all sources of income?

<p>To create a budget that outlines how to allocate income (B)</p> Signup and view all the answers

What is the term for the income that remains after deducting taxes and other mandatory deductions from the gross income?

<p>Net Income (A)</p> Signup and view all the answers

What is the purpose of calculating the net income?

<p>To create a budget that outlines how to allocate income (A)</p> Signup and view all the answers

What is the term for the process of setting aside a portion of income for future use or emergencies?

<p>Savings (C)</p> Signup and view all the answers

What is the purpose of creating a budget?

<p>To allocate income to cover expenses, savings, and investments (B)</p> Signup and view all the answers

What is the term for the income received from working, such as salaries, wages, commissions, and bonuses?

<p>Earned Income (B)</p> Signup and view all the answers

What is the purpose of income diversification?

<p>To ensure financial stability by having multiple sources of income (B)</p> Signup and view all the answers

What is the formula for calculating Net Pay?

<p>Gross Salary - Total Deductions (D)</p> Signup and view all the answers

What is the purpose of filing taxes?

<p>To declare income to the tax authorities and calculate the amount of tax owed or refund due (D)</p> Signup and view all the answers

What is the term for using income to purchase assets that can generate additional income or appreciate in value over time?

<p>Investing (D)</p> Signup and view all the answers

What is the main purpose of creating a budget?

<p>To plan for the future finances of an event, business, or organization (B)</p> Signup and view all the answers

What is the difference between a budget and a statement of income-and-expenditure?

<p>A budget is used to predict future finances, while a statement of income-and-expenditure is used to describe actual finances (A)</p> Signup and view all the answers

What is the purpose of calculating the percentage change in expenditure?

<p>To understand how expenditure has changed over time (C)</p> Signup and view all the answers

What is the importance of setting financial goals?

<p>To establish short-term and long-term financial goals and create a plan to achieve them (A)</p> Signup and view all the answers

What is the purpose of monitoring and adjusting a budget?

<p>To regularly review income and expenses to ensure the budget is being followed and adjust as necessary (D)</p> Signup and view all the answers

What is the purpose of a plan for taxes?

<p>To ensure compliance with tax laws and set aside money for taxes (B)</p> Signup and view all the answers

What is the formula to calculate the total expenditure?

<p>Total Expenditure = ∑ All Expense Items (D)</p> Signup and view all the answers

What is the purpose of UIF?

<p>To provide financial support to employees who lose their jobs (A)</p> Signup and view all the answers

What is the formula to calculate the net income?

<p>Net Income = Total Income - Total Expenditure (D)</p> Signup and view all the answers

What is the importance of comparing predicted and actual values?

<p>To see how the business actually performed versus how it was planned or predicted to perform (C)</p> Signup and view all the answers

What is the primary purpose of using mathematical tools and techniques in decision-making?

<p>To calculate key metrics (D)</p> Signup and view all the answers

Which step in the decision-making process involves establishing the criteria for comparing options?

<p>Establish criteria (A)</p> Signup and view all the answers

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

<p>To summarize actual income and expenditure (C)</p> Signup and view all the answers

What is the benefit of using historical data in budgeting?

<p>To inform future predictions based on observed data (C)</p> Signup and view all the answers

What is the term for the total revenue generated from various sources?

<p>Income (D)</p> Signup and view all the answers

Which of the following is a key feature of a budget?

<p>Comparison of predicted vs. actual values (B)</p> Signup and view all the answers

What is the purpose of documenting the comparison process in decision-making?

<p>To present findings in a clear and logical manner (C)</p> Signup and view all the answers

Which step in the decision-making process involves evaluating the potential risks of each option?

<p>Assess risks (C)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values in a budget?

<p>To evaluate performance (D)</p> Signup and view all the answers

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

<p>Summary of actual income and expenditure (A)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values in budgeting?

<p>To determine the accuracy of predictions and assess performance (C)</p> Signup and view all the answers

What is the break-even point in a business?

<p>The point where the cost equals the income (D)</p> Signup and view all the answers

What is the formula to calculate the cost of a specific quantity needed?

<p>Cost of Quantity Needed = (Quantity Needed / Packet Size) × Packet Price (B)</p> Signup and view all the answers

What is the formula to calculate the break-even quantity?

<p>Break-even Quantity = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) (A)</p> Signup and view all the answers

What is the purpose of calculating the net income of a business?

<p>To assess the financial performance of a business (A)</p> Signup and view all the answers

What is the graphical representation of the break-even point?

<p>The intersection of two graphs: one representing costs and the other representing income (B)</p> Signup and view all the answers

What is the formula to calculate the net income of a business?

<p>Net Income = Total Income - Total Expenditure (B)</p> Signup and view all the answers

What is the purpose of adjusting the cost price of an item?

<p>To account for other costs not considered in the initial cost price (A)</p> Signup and view all the answers

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

<p>To determine the point where the business must make to avoid a loss and start making a profit (C)</p> Signup and view all the answers

What is the formula to calculate the total cost of a batch?

<p>Total Cost of Batch = Sum of Cost of Each Ingredient or Material (A)</p> Signup and view all the answers

What is the importance of understanding the cost price of an item?

<p>It helps in determining how much the item must be sold for to cover the costs involved (B)</p> Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements?

<p>To understand the financial performance of a business over a specific period (C)</p> Signup and view all the answers

What is the cost price per item?

<p>The total cost of the batch divided by the number of items in the batch (C)</p> Signup and view all the answers

What is the method of determining the break-even point by drawing graphs?

<p>Drawing graphs method (D)</p> Signup and view all the answers

What is the formula to calculate the change in value over time?

<p>Change = Value in Later Period - Value in Earlier Period (A)</p> Signup and view all the answers

What is the purpose of comparing the income and expenditure of a business over time?

<p>To show how income and expenditure have changed over time (C)</p> Signup and view all the answers

What is the equation used to calculate the income?

<p>Income = Selling Price per Unit x Number of Units Sold (A)</p> Signup and view all the answers

What is the equation used to calculate the total cost?

<p>Total Cost = Fixed Costs + (Variable Cost per Unit x Number of Units Sold) (A)</p> Signup and view all the answers

What is the importance of calculating the difference between predicted and actual values?

<p>It helps in determining the accuracy of predictions and assessing performance (C)</p> Signup and view all the answers

What is the term used to describe a currency that exchanges for more than one unit of another currency?

<p>Strong currency (D)</p> Signup and view all the answers

What is the primary purpose of a tariff system?

<p>To provide a fair and incremental pricing structure (A)</p> Signup and view all the answers

How do you determine the break-even point in a tariff system?

<p>By finding the intersection of the two graphs (B)</p> Signup and view all the answers

What does the incremental increase in a tariff system graph indicate?

<p>A higher tariff rate for higher consumption levels (B)</p> Signup and view all the answers

What is the purpose of a cost-benefit analysis?

<p>To compare the costs and benefits of different options (C)</p> Signup and view all the answers

What is the first step in comparing two options?

<p>To clearly define the two options that need to be compared (C)</p> Signup and view all the answers

What is the purpose of a risk assessment?

<p>To evaluate the potential risks associated with each option (D)</p> Signup and view all the answers

What does the formula $\text{Percentage Increase} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100$ calculate?

<p>The percentage increase in a value (C)</p> Signup and view all the answers

What do flat line sections on a graph represent in a tariff system?

<p>A period where the cost does not change (B)</p> Signup and view all the answers

What is the main difference between simple and compound interest?

<p>Simple interest is calculated on the principal amount, while compound interest is calculated on the principal plus any accumulated interest. (A)</p> Signup and view all the answers

What is the formula for calculating the total amount in a compound interest calculation?

<p>Total Amount = P × (1 + r)^t (B)</p> Signup and view all the answers

What is the graphical representation of compound interest?

<p>A curve showing exponential growth. (D)</p> Signup and view all the answers

What is the purpose of a fixed deposit account?

<p>To invest money for a set period and earn interest. (D)</p> Signup and view all the answers

How is interest calculated in a fixed deposit account?

<p>Monthly, based on the balance at the beginning of the month. (A)</p> Signup and view all the answers

What is the total cost of an item bought on credit?

<p>The original price plus the deposit and interest. (D)</p> Signup and view all the answers

What is the purpose of a hire purchase?

<p>To buy an item on credit and pay for it later through installments. (D)</p> Signup and view all the answers

What is the formula for calculating the fee in a bank fee structure with a fixed cost and a percentage of the transaction value?

<p>Fee = Fixed cost + (Percentage of transaction value) (C)</p> Signup and view all the answers

What is the difference between a transactional account and a fixed deposit account?

<p>Transactional accounts have a changing balance, while fixed deposit accounts have a fixed balance. (C)</p> Signup and view all the answers

What is the purpose of comparing the interest rates of different accounts?

<p>To determine the best option for saving money and earning interest. (C)</p> Signup and view all the answers

What is the purpose of UIF?

<p>To provide financial assistance to employees who become unemployed (D)</p> Signup and view all the answers

What happens to the UIF contribution when an employee's salary exceeds the salary ceiling?

<p>The UIF contribution remains the same as the salary ceiling (A)</p> Signup and view all the answers

What is the estimation method used for in currency conversions?

<p>To get a general idea of the exchanged amount (B)</p> Signup and view all the answers

What does a strong currency mean in relation to another currency?

<p>One unit of the currency exchanges for more than one unit of another currency (D)</p> Signup and view all the answers

Why is the accurate calculation method important in currency conversions?

<p>To ensure accurate financial planning for businesses (A)</p> Signup and view all the answers

What is the total contribution to the UIF from both the employee and employer?

<p>2% of the gross salary (D)</p> Signup and view all the answers

What is the exchange rate used for?

<p>To convert one type of currency into another (C)</p> Signup and view all the answers

What happens to the UIF contribution when the employer's contribution is added to the employee's contribution?

<p>The UIF contribution increases (C)</p> Signup and view all the answers

Why do exchange rates fluctuate?

<p>Because of changes in the global economy (D)</p> Signup and view all the answers

What is the purpose of calculating the total UIF contribution?

<p>To calculate the UIF deduction from the employee's salary (C)</p> Signup and view all the answers

What is the term for the employee's salary excluding any additional income or deductions?

<p>Basic Salary (C)</p> Signup and view all the answers

What is the purpose of a quotation?

<p>Provides a guideline of all the costs that a customer will have to pay (B)</p> Signup and view all the answers

What is the term for the portion of an employee's salary on which tax is calculated?

<p>Taxable Income (B)</p> Signup and view all the answers

What is the difference between the Gross Salary and the Total Deductions called?

<p>Net Pay (A)</p> Signup and view all the answers

What is the document that provides a summary of all the costs that a customer must pay?

<p>Invoice (C)</p> Signup and view all the answers

What is the formula to calculate the Gross Salary?

<p>Gross Salary = Basic Salary + Additional Incomes (A)</p> Signup and view all the answers

What is the formula to calculate the Total Deductions?

<p>Total Deductions = Sum of All Deduction Values (B)</p> Signup and view all the answers

What is the purpose of a receipt?

<p>Provides proof that a customer has paid for an item/service (B)</p> Signup and view all the answers

What is the main purpose of a budget?

<p>To plan the future finances of an event, business, or organization (B)</p> Signup and view all the answers

What is the difference between a budget and a statement of income-and-expenditure?

<p>A budget shows predicted income and expenditure, while a statement shows actual values (A)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values in a budget?

<p>To identify areas where the business can improve (B)</p> Signup and view all the answers

What is the formula for calculating total expenditure?

<p>Total Expenditure = ∑ All Expense Items (B)</p> Signup and view all the answers

What is the purpose of setting financial goals?

<p>To establish short-term and long-term financial objectives (B)</p> Signup and view all the answers

What is the importance of monitoring and adjusting a budget?

<p>It helps to ensure that the budget is being followed and make adjustments as necessary (B)</p> Signup and view all the answers

What is the purpose of a plan for taxes?

<p>To ensure compliance with tax laws and set aside money for taxes (B)</p> Signup and view all the answers

What is the formula for calculating the percentage change in expenditure?

<p>Percentage Change = (Actual Value - Previous Value) / Previous Value (B)</p> Signup and view all the answers

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

<p>To show the actual income and expenditure of a business (D)</p> Signup and view all the answers

What is the importance of comparing predicted and actual values in a statement of income-and-expenditure?

<p>It helps to identify areas where the business can improve (D)</p> Signup and view all the answers

What is the total contribution to UIF from both the employee and employer?

<p>2% of gross salary (B)</p> Signup and view all the answers

If an employee's salary is above the salary ceiling, how is UIF calculated?

<p>Only on the first R12,478.00 of the salary (B)</p> Signup and view all the answers

What is the purpose of exchange rates?

<p>To compare the value of different currencies (C)</p> Signup and view all the answers

What is the accurate calculation method for currency conversions?

<p>Multiplying the amount of foreign currency by the exchange rate (A)</p> Signup and view all the answers

What is a currency considered if one unit of that currency exchanges for more than one unit of another currency?

<p>Strong (B)</p> Signup and view all the answers

What is the advantage of using the estimation method for currency conversions?

<p>It provides a general idea of the exchanged amount (B)</p> Signup and view all the answers

What is the maximum UIF deduction that can be made from an employee's salary?

<p>R124.78 (C)</p> Signup and view all the answers

What is the formula for calculating the employer's contribution to UIF?

<p>1% of gross salary (C)</p> Signup and view all the answers

Why is it important to use the accurate calculation method for currency conversions in business?

<p>To ensure accurate financial planning (C)</p> Signup and view all the answers

What is the salary ceiling for calculating UIF?

<p>R12,478.00 (D)</p> Signup and view all the answers

What is the purpose of calculating the Gross Salary?

<p>To determine the take-home pay (A)</p> Signup and view all the answers

What is the term for payments made by the government to individuals?

<p>Government Transfers (D)</p> Signup and view all the answers

What is the purpose of identifying all sources of income?

<p>To create a budget (B)</p> Signup and view all the answers

What is the term for setting aside a portion of income for future use or emergencies?

<p>Savings (A)</p> Signup and view all the answers

What is the purpose of creating a budget?

<p>To allocate income to cover expenses, savings, and investments (B)</p> Signup and view all the answers

What is the term for using income to purchase assets that can generate additional income or appreciate in value over time?

<p>Investments (C)</p> Signup and view all the answers

What is the purpose of calculating the net income?

<p>To determine the take-home pay (C)</p> Signup and view all the answers

What is the purpose of identifying deductions?

<p>To calculate the net income (D)</p> Signup and view all the answers

What is the purpose of a receipt?

<p>To provide a summary of all costs (A)</p> Signup and view all the answers

What is the formula to calculate the Net Pay?

<p>Gross Salary - Total Deductions (A)</p> Signup and view all the answers

What is the primary characteristic of a currency that is considered 'strong'?

<p>One unit of the currency exchanges for more than one unit of another currency. (C)</p> Signup and view all the answers

What is the main purpose of a tariff system?

<p>To charge different rates for different quantities of a good or service. (A)</p> Signup and view all the answers

What does the incremental increase in a tariff system graph indicate?

<p>The cost increases at a higher rate for higher quantities of a good or service. (C)</p> Signup and view all the answers

What is the purpose of comparing the graphs of different tariff systems?

<p>To find the break-even point between two tariff systems. (B)</p> Signup and view all the answers

What is the formula for calculating the percentage increase in a tariff system?

<p>(New Value - Old Value) / Old Value (B)</p> Signup and view all the answers

What is the purpose of identifying the options in a cost-benefit analysis?

<p>To establish the criteria for comparing the options. (A)</p> Signup and view all the answers

What is the purpose of a risk assessment in a cost-benefit analysis?

<p>To evaluate the potential risks associated with each option. (C)</p> Signup and view all the answers

What does a flat line section on a graph represent in a tariff system?

<p>A period of fixed cost. (A)</p> Signup and view all the answers

What is the purpose of calculating the cost-benefit ratio in a cost-benefit analysis?

<p>To compare the benefits of each option to its costs. (C)</p> Signup and view all the answers

What is the purpose of a graphical representation of a tariff system?

<p>To show the cost associated with each quantity of a good or service. (A)</p> Signup and view all the answers

What is the main difference between simple and compound interest?

<p>Simple interest is calculated on the principal, while compound interest is calculated on the principal and interest. (A)</p> Signup and view all the answers

What is the formula for calculating the total amount in a compound interest scenario?

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

What is the primary purpose of comparing predicted and actual values in a budget?

<p>To determine the accuracy of predictions (D)</p> Signup and view all the answers

What is the formula to calculate the net income?

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

What is the characteristic of a compound interest graph?

<p>A curve showing exponential growth. (D)</p> Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements?

<p>To understand the financial performance of a business over time (A)</p> Signup and view all the answers

What is the main difference between a transactional account and a fixed deposit account?

<p>Transactional accounts have a changing balance, while fixed deposit accounts have a constant balance. (A)</p> Signup and view all the answers

What is the term for purchasing an item now and paying for it later through installments?

<p>Buying on credit. (C)</p> Signup and view all the answers

What is the formula to calculate the cost of a specific quantity needed?

<p>(Quantity Needed / Packet Size) x Packet Price (B)</p> Signup and view all the answers

What is the importance of understanding the cost price of an item?

<p>To determine the selling price of an item (B)</p> Signup and view all the answers

What is the formula for calculating the fee in a bank fee structure with a fixed cost and a percentage of the transaction value?

<p>Fee = Fixed cost + (Percentage of transaction value). (B)</p> Signup and view all the answers

What is the purpose of calculating compound interest?

<p>To calculate the total amount saved over time. (A)</p> Signup and view all the answers

What is the purpose of adjusting the cost price of an item?

<p>To account for other costs not considered (B)</p> Signup and view all the answers

What is the characteristic of a simple interest graph?

<p>A straight line showing a constant increase. (D)</p> Signup and view all the answers

What is the purpose of determining the selling price of an item?

<p>To ensure that the selling price is higher than the cost price (D)</p> Signup and view all the answers

What is the primary purpose of using mathematical tools and techniques in comparing two options?

<p>To make an informed decision based on established criteria (A)</p> Signup and view all the answers

What is the formula to calculate the change in value over time?

<p>Value in Later Period - Value in Earlier Period (A)</p> Signup and view all the answers

What is the term for the initial payment made when purchasing an item on credit or taking a loan?

<p>Deposit. (B)</p> Signup and view all the answers

What is the purpose of comparing the values of two different periods?

<p>To understand the financial performance of a business over time (D)</p> Signup and view all the answers

What is the main difference between a budget and a statement of income and expenditure?

<p>A budget is used for planning, while a statement of income and expenditure is used for evaluation (B)</p> Signup and view all the answers

What is the importance of considering additional costs when determining the selling price of an item?

<p>To account for other costs not considered in the initial cost price (C)</p> Signup and view all the answers

What is the purpose of comparing the total costs, benefits, and risks of each option in the decision-making process?

<p>To make an informed decision based on established criteria (C)</p> Signup and view all the answers

What is the purpose of documenting the comparison process in the decision-making process?

<p>To provide a record of the comparison process, including all calculations and rationales for the decision (B)</p> Signup and view all the answers

What is the purpose of establishing criteria in the decision-making process?

<p>To compare the options based on important aspects of the decision (A)</p> Signup and view all the answers

What is the purpose of analyzing the costs of each option in the decision-making process?

<p>To calculate the total cost of each option (D)</p> Signup and view all the answers

What is the purpose of analyzing the benefits of each option in the decision-making process?

<p>To quantify the benefits of each option (B)</p> Signup and view all the answers

What is the purpose of assessing the risks of each option in the decision-making process?

<p>To evaluate the potential risks of each option (D)</p> Signup and view all the answers

What is the purpose of comparing the predicted and actual values in a budget?

<p>To evaluate the performance of the budget (C)</p> Signup and view all the answers

What is the purpose of using a statement of income and expenditure?

<p>To provide an overview of the current finances of an event, business, or organization (D)</p> Signup and view all the answers

What is the definition of break-even point in a business or organization?

<p>The amount of income that the business/organization must make to cover all expenses incurred (D)</p> Signup and view all the answers

What is the graphical representation of the break-even point?

<p>The intersection of two graphs: one representing costs and the other representing income (D)</p> Signup and view all the answers

What is the formula to calculate the income?

<p>Income = Selling Price per Unit × Number of Units Sold (D)</p> Signup and view all the answers

What is the formula to calculate the total cost?

<p>Total Cost = Fixed Costs + (Variable Cost per Unit × Number of Units Sold) (D)</p> Signup and view all the answers

What is the formula to calculate the break-even quantity?

<p>Break-even Quantity = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) (C)</p> Signup and view all the answers

What is the interpretation of the break-even quantity?

<p>The number of units that must be sold to cover all costs (D)</p> Signup and view all the answers

What is the method of determining the break-even value by drawing graphs?

<p>Drawing Graphs (A)</p> Signup and view all the answers

What is the formula to calculate the cost price per item?

<p>Cost Price per Item = Total Cost of Batch / Number of Items in Batch (C)</p> Signup and view all the answers

What is the total cost of batch?

<p>The sum of the cost of each ingredient or material (C)</p> Signup and view all the answers

What is the break-even point in terms of the graphical representation?

<p>The point where the two graphs intersect (C)</p> Signup and view all the answers

What is the difference between gross salary and net pay?

<p>Gross salary is the total of all income sources, while net pay is the gross salary minus total deductions (A)</p> Signup and view all the answers

What is the purpose of a quotation?

<p>To provide a guideline of all the costs that a customer will have to pay (B)</p> Signup and view all the answers

What is the term for the employee's salary excluding any additional income or deductions?

<p>Basic salary (B)</p> Signup and view all the answers

What is the formula to calculate the Gross Salary?

<p>Gross Salary = Basic Salary + Additional Incomes (A)</p> Signup and view all the answers

What is the term for the portion of an employee's salary on which tax is calculated?

<p>Taxable income (B)</p> Signup and view all the answers

What is the primary purpose of calculating the Net Pay?

<p>To determine the amount of income available for savings and investments (A)</p> Signup and view all the answers

What is the document that provides a summary of all the costs that a customer must pay?

<p>Invoice (D)</p> Signup and view all the answers

What is the term for income received from sources other than employment?

<p>Unearned Income (D)</p> Signup and view all the answers

What is the purpose of creating a budget?

<p>To allocate income to cover expenses, savings, and investments (A)</p> Signup and view all the answers

What is the formula to calculate the Total Deductions?

<p>Total Deductions = Sum of All Deduction Values (D)</p> Signup and view all the answers

What is the purpose of a receipt?

<p>To provide proof that a customer has paid for an item/service and gives a summary of the costs for buying the item/service and the payment details (D)</p> Signup and view all the answers

What is the term for payments made by the government to individuals?

<p>Government Transfers (D)</p> Signup and view all the answers

What is the primary purpose of identifying all sources of income?

<p>To calculate the gross income (D)</p> Signup and view all the answers

What is the term for setting aside a portion of income for future use or emergencies?

<p>Savings (B)</p> Signup and view all the answers

What is the purpose of calculating the Gross Income?

<p>To identify all sources of income (A)</p> Signup and view all the answers

What is the term for using income to purchase assets that can generate additional income or appreciate in value over time?

<p>Investments (D)</p> Signup and view all the answers

What is the primary purpose of filing taxes?

<p>To declare income to the tax authorities (C)</p> Signup and view all the answers

What is the term for creating a plan for how to allocate income to cover expenses, savings, and investments?

<p>Budgeting (C)</p> Signup and view all the answers

What is the main difference between a weak currency and a strong currency?

<p>A weak currency exchanges for less than one unit of another currency. (B)</p> Signup and view all the answers

What is the purpose of a water tariff system?

<p>To provide a mechanism for charging different rates for different quantities of water used. (D)</p> Signup and view all the answers

What is the graphical representation of a tariff system?

<p>A step-function graph (A)</p> Signup and view all the answers

What is the total contribution to UIF when an employee's gross salary is R12,000.00 per month?

<p>R240.00 (B)</p> Signup and view all the answers

If the exchange rate between the South African Rand (ZAR) and the United States Dollar (USD) is 1 USD = 15 ZAR, what is the value of 200 USD in ZAR?

<p>3,000 ZAR (D)</p> Signup and view all the answers

What is the formula to calculate the monthly cost in a prepaid electricity tariff system?

<p>Monthly Cost = Rate per Unit x Units Used (A)</p> Signup and view all the answers

What is the implication of a strong currency in relation to another currency?

<p>It is more valuable in exchange (C)</p> Signup and view all the answers

What is the purpose of comparing two options?

<p>To evaluate the benefits and costs of each option. (B)</p> Signup and view all the answers

If an employee's gross salary is R15,000.00 per month, what is the UIF contribution capped at?

<p>R124.78 (B)</p> Signup and view all the answers

What is the formula to calculate the percentage increase?

<p>Percentage Increase = (New Value - Old Value) / Old Value x 100 (C)</p> Signup and view all the answers

What is the purpose of a cost-benefit analysis?

<p>To compare the costs and benefits of an option. (B)</p> Signup and view all the answers

What is the purpose of estimating currency conversions?

<p>To get a general idea of the exchanged amount (C)</p> Signup and view all the answers

What is the first step in comparing two options?

<p>Establish the criteria for comparison. (A)</p> Signup and view all the answers

If an employee's gross salary is R10,000.00 per month, what is the total UIF contribution?

<p>R200.00 (D)</p> Signup and view all the answers

What is the implication of a weak currency in relation to another currency?

<p>It is less valuable in exchange (C)</p> Signup and view all the answers

What is the purpose of a risk assessment?

<p>To identify and evaluate the potential risks of an option. (D)</p> Signup and view all the answers

What is the formula to calculate the employee's contribution to UIF?

<p>1% × gross salary (D)</p> Signup and view all the answers

What does an incremental tariff system charge?

<p>Different rates for different quantities of water used. (C)</p> Signup and view all the answers

What is the purpose of accurate calculations in currency conversions?

<p>To determine the exact amount of currency to be exchanged (B)</p> Signup and view all the answers

What is the total UIF contribution when an employee's gross salary is R8,000.00 per month?

<p>R160.00 (A)</p> Signup and view all the answers

What is the primary purpose of using mathematical tools and techniques in decision-making?

<p>To organize and compare complex data to make informed decisions (C)</p> Signup and view all the answers

What is the main difference between a budget and a statement of income-and-expenditure?

<p>A budget predicts income and expenditure, while a statement of income-and-expenditure shows actual values (A)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values in a budget?

<p>To identify areas of underperformance and make adjustments (C)</p> Signup and view all the answers

What is the first step in comparing two options?

<p>Define the options to be compared (C)</p> Signup and view all the answers

What is the purpose of assessing risks in decision-making?

<p>To evaluate the likelihood and impact of potential risks (D)</p> Signup and view all the answers

What is the main purpose of using formulas to calculate key metrics?

<p>To simplify complex calculations and make informed decisions (D)</p> Signup and view all the answers

What is the primary purpose of documenting the comparison process?

<p>To provide transparency and accountability for the decision (D)</p> Signup and view all the answers

What is the main benefit of using tables and graphs to organize data?

<p>To visualize the data and identify patterns and trends (D)</p> Signup and view all the answers

What is the purpose of establishing criteria for comparing options?

<p>To ensure that all important aspects of the decision are considered (B)</p> Signup and view all the answers

What is the main benefit of using a cost-benefit analysis?

<p>To evaluate the financial viability of an option (B)</p> Signup and view all the answers

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

<p>To describe the current finances of an event, business, or organization (D)</p> Signup and view all the answers

What is the formula to calculate the total expenditure?

<p>Total Expenditure = ∑ All Expense Items (D)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values?

<p>To understand how the expenditure has changed over time (D)</p> Signup and view all the answers

What is the formula to calculate the percentage change in expenditure?

<p>Percentage Change = (Actual Value - Previous Value) / Previous Value (A)</p> Signup and view all the answers

What is the purpose of calculating the net income in a statement of income and expenditure?

<p>To assess the financial performance of a business (C)</p> Signup and view all the answers

What is the formula to calculate the cost of a specific quantity needed?

<p>Cost of Quantity Needed = (Quantity Needed / Packet Size) x Packet Price (A)</p> Signup and view all the answers

What is the importance of setting financial goals?

<p>It helps in creating a plan to achieve financial goals (A)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values in a statement of income and expenditure?

<p>To determine the accuracy of predictions (D)</p> Signup and view all the answers

What is the purpose of monitoring and adjusting a budget?

<p>To ensure the budget is being followed and make adjustments as necessary (B)</p> Signup and view all the answers

What is the purpose of a plan for taxes?

<p>To ensure compliance with tax laws (A)</p> Signup and view all the answers

What is the importance of understanding the cost price in determining the selling price?

<p>It ensures that all costs are covered (B)</p> Signup and view all the answers

What is the purpose of a budget?

<p>To create a plan for how to allocate income to cover expenses, savings, and investments (D)</p> Signup and view all the answers

What is the formula to calculate the change in value over time?

<p>Change = Value in Later Period - Value in Earlier Period (D)</p> Signup and view all the answers

What is the purpose of calculating the difference between predicted and actual values?

<p>To determine the accuracy of predictions (A)</p> Signup and view all the answers

What is the difference between a budget and a statement of income-and-expenditure?

<p>A budget is used to plan for future finances, while a statement of income-and-expenditure is used to describe the current finances (A)</p> Signup and view all the answers

What is the importance of understanding the tax obligations?

<p>It ensures compliance with tax laws (B)</p> Signup and view all the answers

What is the importance of considering additional costs when determining the selling price?

<p>It ensures that all costs are covered (A)</p> Signup and view all the answers

What is the formula to calculate the cost price per item?

<p>Cost Price per Item = Total Cost of Batch / Number of Items in Batch (A)</p> Signup and view all the answers

What is the purpose of comparing income and expenditure statements over time?

<p>To assess the financial performance of a business (B)</p> Signup and view all the answers

What is the importance of adjusting the cost price to account for other costs not considered?

<p>It ensures that all costs are covered (A)</p> Signup and view all the answers

What is the main importance of determining the break-even point in a business?

<p>To determine how much money a business must make to avoid a loss and start making a profit (C)</p> Signup and view all the answers

What is the graphical representation of the break-even point?

<p>The intersection of two graphs: one representing costs and one representing income (D)</p> Signup and view all the answers

What is the formula to calculate the income?

<p>Selling Price per Unit × Number of Units Sold (C)</p> Signup and view all the answers

What is the formula to calculate the total cost?

<p>Fixed Costs + (Variable Cost per Unit × Number of Units Sold) (D)</p> Signup and view all the answers

What is the formula to calculate the break-even quantity?

<p>Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit) (D)</p> Signup and view all the answers

What does the break-even point consist of?

<p>Both the horizontal axis value and the vertical axis value (C)</p> Signup and view all the answers

What is the purpose of the graphical representation of the break-even point?

<p>To determine the break-even quantity and the break-even income (B)</p> Signup and view all the answers

What is the method of determining the break-even point using equations?

<p>Method 3: Using Equations (D)</p> Signup and view all the answers

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

<p>It helps in determining the point at which the business starts making a profit (D)</p> Signup and view all the answers

What is the break-even point also known as?

<p>The point of no profit or loss (C)</p> Signup and view all the answers

What is the main difference between simple and compound interest?

<p>Simple interest is calculated on the principal amount, while compound interest is calculated on the principal plus any accumulated interest. (C)</p> Signup and view all the answers

Which of the following best describes the graph representation of compound interest?

<p>A curve showing exponential growth. (A)</p> Signup and view all the answers

What is the formula for calculating the total amount in a compound interest calculation?

<p>P × (1 + r)^t (B)</p> Signup and view all the answers

What type of account is used for regular transactions, such as withdrawals, payments, and deposits, and interest is calculated daily?

<p>Transactional Account (A)</p> Signup and view all the answers

What is the term for the cost of borrowing money, added to the principal amount?

<p>Interest (B)</p> Signup and view all the answers

What is the formula for calculating the fee in a bank fee structure with a maximum fee limit?

<p>Fee = Fixed cost + (Percentage of transaction value), if calculated fee exceeds the maximum fee, then the maximum fee is charged. (B)</p> Signup and view all the answers

What is the purpose of calculating interest in a bank account?

<p>To calculate the total amount in a savings account. (A)</p> Signup and view all the answers

What is the main difference between a hire purchase and a loan?

<p>A hire purchase is used to buy an item and pay for it through monthly instalments, while a loan is used to borrow money and repay it with interest. (B)</p> Signup and view all the answers

What is the formula for calculating the total amount in a simple interest calculation?

<p>P + (P × r × t) (D)</p> Signup and view all the answers

What is the term for the initial payment made when purchasing an item on credit or taking a loan?

<p>Deposit (C)</p> Signup and view all the answers

What is the main difference between a payslip and a receipt?

<p>A payslip shows the employee's salary and deductions, while a receipt shows proof of payment. (D)</p> Signup and view all the answers

What is the purpose of a quotation in a financial document?

<p>To provide a guideline of all the costs that a customer will have to pay if they choose to buy an item or service. (B)</p> Signup and view all the answers

What is the formula to calculate the taxable income?

<p>Taxable Income = Gross Salary - Total Deductions (B)</p> Signup and view all the answers

What is the purpose of understanding the different terms used in financial documents?

<p>To enable the accurate interpretation and analysis of financial documents. (B)</p> Signup and view all the answers

What is the difference between the gross salary and the net pay?

<p>The total deductions. (A)</p> Signup and view all the answers

What is the purpose of an invoice in a financial document?

<p>To provide a summary of the costs that a customer must pay because they have chosen to buy an item or service. (D)</p> Signup and view all the answers

What is the formula to calculate the net pay?

<p>Net Pay = Gross Salary - Total Deductions (A)</p> Signup and view all the answers

What is the main difference between a quotation and an invoice?

<p>A quotation shows the costs that a customer will have to pay if they choose to buy an item or service, while an invoice shows the costs that a customer must pay because they have chosen to buy an item or service. (D)</p> Signup and view all the answers

What is the total contribution to UIF if the employee's gross salary is R15,000 per month?

<p>R300 (C)</p> Signup and view all the answers

If the exchange rate is 1 USD = 15 ZAR, what is the equivalent value of 200 ZAR in USD?

<p>13.33 USD (B)</p> Signup and view all the answers

What is the employee's contribution to UIF if the gross salary is R8,000 per month?

<p>R80 (A)</p> Signup and view all the answers

If a currency is considered strong, what does it imply about the exchange rate?

<p>One unit of the currency exchanges for more than one unit of another currency. (D)</p> Signup and view all the answers

What is the employer's contribution to UIF if the gross salary is R12,000 per month?

<p>R120 (A)</p> Signup and view all the answers

What is the total contribution to UIF if the gross salary is R20,000 per month?

<p>R400 (A)</p> Signup and view all the answers

If the exchange rate is 1 EUR = 18 ZAR, what is the equivalent value of 300 EUR in ZAR?

<p>5,400 ZAR (D)</p> Signup and view all the answers

What is the maximum UIF amount that can be deducted from an employee's salary if the gross salary is above R12,478.00 per month?

<p>R124.78 (B)</p> Signup and view all the answers

If a currency is weak, what does it imply about the exchange rate?

<p>One unit of the currency exchanges for less than one unit of another currency. (A)</p> Signup and view all the answers

What is the total contribution to UIF if the gross salary is R10,000 per month?

<p>R200 (B)</p> Signup and view all the answers

What is the key difference between earned income and unearned income?

<p>Earned income is received from employment, while unearned income is from other sources (B)</p> Signup and view all the answers

What is the primary purpose of identifying all sources of income?

<p>To understand the different sources of income (A)</p> Signup and view all the answers

What is the term for the process of declaring income to the tax authorities and calculating the amount of tax owed or the refund due?

<p>Filing taxes (B)</p> Signup and view all the answers

What is the purpose of a budget in personal finance?

<p>To create a plan for allocating income to cover expenses, savings, and investments (A)</p> Signup and view all the answers

What is the term for using income to purchase assets that can generate additional income or appreciate in value over time?

<p>Investments (C)</p> Signup and view all the answers

What is the key difference between gross income and net income?

<p>Gross income is before deductions, while net income is after deductions (A)</p> Signup and view all the answers

What is the primary purpose of income diversification in personal finance?

<p>To reduce risk (C)</p> Signup and view all the answers

What is the term for the income remaining after all deductions, such as taxes, pension contributions, and other mandatory deductions?

<p>Net income (C)</p> Signup and view all the answers

What is the purpose of calculating net income in personal finance?

<p>To determine how much income is available for spending or saving (D)</p> Signup and view all the answers

What is the key difference between a budget and a statement of income-and-expenditure?

<p>A budget is a plan, while a statement of income-and-expenditure is a summary (B)</p> Signup and view all the answers

What is the primary purpose of a budget?

<p>To plan and predict future income and expenditure (A)</p> Signup and view all the answers

What is the main difference between a budget and a statement of income-and-expenditure?

<p>A budget predicts future income and expenditure, while a statement shows actual income and expenditure (D)</p> Signup and view all the answers

What is the importance of comparing predicted and actual values in a budget?

<p>To identify areas for improvement (A)</p> Signup and view all the answers

What is the formula to calculate the total expenditure?

<p>Total Expenditure = ∑ All Expense Items (A)</p> Signup and view all the answers

What is the purpose of setting financial goals?

<p>To create a plan to achieve financial goals by saving and investing (A)</p> Signup and view all the answers

What is the purpose of monitoring and adjusting a budget?

<p>To ensure the budget is being followed and adjust as necessary (D)</p> Signup and view all the answers

What is the purpose of a plan for taxes?

<p>To ensure compliance with tax laws and set aside money for taxes (B)</p> Signup and view all the answers

What is the formula to calculate the percentage change in expenditure?

<p>Percentage Change = (Actual Value - Previous Value) / Previous Value × 100% (B)</p> Signup and view all the answers

What is the importance of comparing predicted and actual values in a statement of income-and-expenditure?

<p>To identify areas for improvement (B)</p> Signup and view all the answers

What is the main difference between a strong and a weak currency?

<p>A strong currency exchanges for more than one unit of another currency, while a weak currency exchanges for less than one unit of another currency (A)</p> Signup and view all the answers

What is the purpose of UIF?

<p>To provide financial support to employees who lose their jobs (D)</p> Signup and view all the answers

What is the purpose of comparing the costs of different tariff systems?

<p>To determine the break-even point of two tariff systems (A)</p> Signup and view all the answers

What is an incremental tariff system?

<p>A tariff system where different rates are charged for different portions of the quantity of water used (C)</p> Signup and view all the answers

What is the purpose of a graphical representation of a tariff system?

<p>To visualize the incremental nature of the tariff system (A)</p> Signup and view all the answers

What is the formula to calculate the monthly cost in a prepaid electricity tariff system?

<p>Monthly Cost = Rate per Unit x Units Used (A)</p> Signup and view all the answers

What is the purpose of a cost-benefit analysis?

<p>To identify the benefits of an option and compare them to the costs (C)</p> Signup and view all the answers

What is the purpose of a risk assessment?

<p>To identify the potential risks associated with an option (C)</p> Signup and view all the answers

What does the break-even point represent in a tariff system?

<p>The point where the cost of one tariff system is equal to the cost of another tariff system (C)</p> Signup and view all the answers

What is the purpose of identifying the options to be compared?

<p>To clearly define the two options that need to be compared (B)</p> Signup and view all the answers

What is the purpose of calculating the percentage increase in cost?

<p>To measure the change in cost over time (D)</p> Signup and view all the answers

What is the Break-even Point in a business?

<p>The point where the total cost of production equals the total revenue (B)</p> Signup and view all the answers

What is the formula to calculate the Break-even Quantity?

<p>Break-even Quantity = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) (C)</p> Signup and view all the answers

What is the graphical representation of the Break-even Point?

<p>The intersection of two graphs, one representing costs and the other representing income (A)</p> Signup and view all the answers

What is the importance of the Break-even Point?

<p>It indicates how much money a business must make to avoid a loss and start making a profit (B)</p> Signup and view all the answers

What is the formula to calculate the Cost Price per Item?

<p>Cost Price per Item = Total Cost of Batch / Number of Items in Batch (B)</p> Signup and view all the answers

What is the formula to calculate the Total Cost of Batch?

<p>Total Cost of Batch = Sum of Cost of Each Ingredient or Material (C)</p> Signup and view all the answers

What is the method of determining the Break-even Value using equations?

<p>Trial and Improvement (B)</p> Signup and view all the answers

What is the formula to calculate the Income?

<p>Income = Selling Price per Unit × Number of Units Sold (D)</p> Signup and view all the answers

What is the formula to calculate the Total Cost?

<p>Total Cost = Fixed Costs + (Variable Cost per Unit × Number of Units Sold) (D)</p> Signup and view all the answers

What is the Break-even Quantity?

<p>The number of units that must be sold to cover all costs (D)</p> Signup and view all the answers

What is the purpose of calculating the difference between predicted and actual values in a budget?

<p>To determine the accuracy of predictions (C)</p> Signup and view all the answers

Which of the following is a step in calculating the cost price of an item?

<p>Calculate the cost of the specific quantity needed (C)</p> Signup and view all the answers

What is the purpose of analyzing income-and-expenditure statements?

<p>To compare the income and expenditure of different periods (C)</p> Signup and view all the answers

What is the formula to calculate the change in value between two periods?

<p>Change = Value in Later Period - Value in Earlier Period (A)</p> Signup and view all the answers

What is the primary difference between simple and compound interest?

<p>Compound interest is calculated on the principal plus any accumulated interest. (A)</p> Signup and view all the answers

What is the importance of considering additional costs when determining the selling price of an item?

<p>To cover all costs involved in making the item (B)</p> Signup and view all the answers

What is the formula for calculating the total amount in a compound interest scenario?

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

What is the characteristic of a graph that represents compound interest?

<p>A curve showing exponential growth. (B)</p> Signup and view all the answers

What is the purpose of setting a balanced and appropriate selling price?

<p>To avoid making the item too expensive for buyers (C)</p> Signup and view all the answers

What is the formula to calculate the cost price per item?

<p>Cost Price per Item = Total Cost of Batch / Number of Items in Batch (D)</p> Signup and view all the answers

What is the key difference between a transactional account and a fixed deposit account?

<p>The balance can change regularly in a transactional account. (B)</p> Signup and view all the answers

What is the purpose of comparing the income and expenditure of different periods?

<p>To identify improvements or declines in performance (A)</p> Signup and view all the answers

What is the term for purchasing an item now and paying for it later through installments?

<p>Buying on credit. (B)</p> Signup and view all the answers

What is the total cost of an item purchased through hire purchase?

<p>The original price plus the deposit and interest. (C)</p> Signup and view all the answers

What is the formula to calculate the cost of quantity needed?

<p>Cost of Quantity Needed = (Quantity Needed / Packet Size) × Packet Price (B)</p> Signup and view all the answers

What is the importance of adjusting the cost price to account for other costs not considered?

<p>To cover all costs involved in making the item (D)</p> Signup and view all the answers

What is the formula for calculating the fee in a bank fee structure with a maximum fee limit?

<p>Fixed cost + (Percentage of transaction value), but if the calculated fee exceeds the maximum fee, then the maximum fee is charged. (D)</p> Signup and view all the answers

What is the purpose of calculating interest in a fixed deposit account?

<p>To determine the interest earned at the end of the month. (C)</p> Signup and view all the answers

What is the key difference between a hire purchase and a loan?

<p>A hire purchase involves buying an item and paying for it later, whereas a loan involves borrowing money. (C)</p> Signup and view all the answers

What is the purpose of calculating the total amount in a compound interest scenario?

<p>To determine the total amount of money accumulated over time. (D)</p> Signup and view all the answers

What is the primary purpose of using mathematical tools and techniques in decision-making?

<p>To organize and visualize the data (A)</p> Signup and view all the answers

What is the key feature of a budget that allows for a performance assessment?

<p>The comparison of predicted and actual values (D)</p> Signup and view all the answers

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

<p>To describe what has actually been spent and earned (A)</p> Signup and view all the answers

What is the benefit of using a cost-benefit analysis in decision-making?

<p>It allows for a comparison of the total costs, benefits, and risks of each option (B)</p> Signup and view all the answers

What is the primary purpose of establishing criteria in decision-making?

<p>To identify the key metrics that will be used to evaluate the options (A)</p> Signup and view all the answers

What is the benefit of using graphs and tables in decision-making?

<p>It allows for a visual comparison of the data, making it easier to analyze and make a decision (B)</p> Signup and view all the answers

What is the purpose of documenting the comparison process in decision-making?

<p>To provide a record of the decision-making process, including all calculations and rationales (A)</p> Signup and view all the answers

What is the benefit of using a risk assessment in decision-making?

<p>It helps to identify and evaluate the potential risks of each option (A)</p> Signup and view all the answers

What is the primary purpose of comparing the total costs, benefits, and risks of each option in decision-making?

<p>To make an informed decision about which option is more advantageous (B)</p> Signup and view all the answers

What is the benefit of using a break-even analysis in decision-making?

<p>It helps to identify the point at which the total revenue equals the total cost (B)</p> Signup and view all the answers

What is the difference between Gross Salary and Net Pay?

<p>Gross Salary minus Total Deductions (D)</p> Signup and view all the answers

What is the purpose of a Quotation?

<p>To provide a guideline of all the costs that a customer will have to pay (B)</p> Signup and view all the answers

What is the term for the portion of an employee's salary on which tax is calculated?

<p>Taxable Income (A)</p> Signup and view all the answers

What is the difference between a Quotation and an Invoice?

<p>A Quotation provides a guideline of all the costs, while an Invoice provides a summary of all the costs (C)</p> Signup and view all the answers

What is the term for the employee's salary excluding any additional income or deductions?

<p>Basic Salary (C)</p> Signup and view all the answers

What is the purpose of a Receipt?

<p>To provide proof that a customer has paid for an item/service (B)</p> Signup and view all the answers

What is the formula to calculate Gross Salary?

<p>Basic Salary + Additional Incomes (C)</p> Signup and view all the answers

What is the term for items such as Medical Aid and Pension for which a payment is required from the employee?

<p>Deductions (D)</p> Signup and view all the answers

What is the implication of a salary ceiling of R12,478.00 per month for UIF contributions?

<p>It means that UIF contributions will only be calculated on the first R12,478.00 of any salary above the ceiling. (A)</p> Signup and view all the answers

What is the purpose of using exchange rates in international trade?

<p>To convert currencies accurately for business transactions. (C)</p> Signup and view all the answers

What is the difference between a strong and weak currency?

<p>A strong currency exchanges for more units of another currency, while a weak currency exchanges for less units. (A)</p> Signup and view all the answers

What is the primary purpose of understanding the different sources of income in personal finance?

<p>To create a plan for allocating income to cover expenses, savings, and investments (C)</p> Signup and view all the answers

Why is accurate calculation of currency conversions necessary for businesses?

<p>To ensure accurate financial planning and avoid losses. (B)</p> Signup and view all the answers

What is the primary purpose of utilizing mathematical tools and techniques in decision-making?

<p>To organize and visualize the data to make an informed decision (D)</p> Signup and view all the answers

What is the implication of a total UIF contribution of 2% of gross salary?

<p>The employer contributes 1% and the employee contributes 1%. (D)</p> Signup and view all the answers

What is the key difference between earned income and unearned income?

<p>The source of the income, with earned income coming from employment and unearned income coming from other sources (D)</p> Signup and view all the answers

What is the primary purpose of creating a budget?

<p>To plan and allocate income for future expenses (A)</p> Signup and view all the answers

What is the purpose of calculating the net income of an individual?

<p>To create a budget that outlines how the income will be spent (D)</p> Signup and view all the answers

Which of the following is a key feature of a budget?

<p>Comparison of predicted and actual values (D)</p> Signup and view all the answers

Why is estimation of currency conversions useful for travelers?

<p>To get a general idea of the exchanged amount. (A)</p> Signup and view all the answers

What is the purpose of regularly reviewing income and expenses in a budget?

<p>To identify areas for improvement and adjust the budget as necessary (C)</p> Signup and view all the answers

What is the formula for calculating the total UIF contribution?

<p>2% × gross salary (B)</p> Signup and view all the answers

What is the primary purpose of income diversification in personal finance?

<p>To ensure financial stability by having multiple sources of income (B)</p> Signup and view all the answers

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

<p>To provide an overview of the current finances of an event, business, or organization (B)</p> Signup and view all the answers

What is the purpose of filing taxes in personal finance?

<p>To declare income to the tax authorities and calculate the amount of tax owed or the refund due (B)</p> Signup and view all the answers

What is the purpose of calculating the employee's UIF contribution?

<p>To deduct the correct amount from the employee's salary. (C)</p> Signup and view all the answers

Which step in the decision-making process involves comparing the total costs, benefits, and risks of each option?

<p>Make a decision (B)</p> Signup and view all the answers

What is the difference between a budget and a statement of income-and-expenditure?

<p>A budget shows predicted income and expenditure, while a statement of income-and-expenditure shows actual values (A)</p> Signup and view all the answers

What is the purpose of calculating the cost-benefit ratio?

<p>To compare the costs and benefits of each option (D)</p> Signup and view all the answers

What is the implication of a high exchange rate on imports?

<p>It makes imports more expensive. (A)</p> Signup and view all the answers

What is the formula to calculate the total expenditure of a business?

<p>Total Expenditure = ∑ All Expense Items (C)</p> Signup and view all the answers

What is the primary purpose of creating a budget in personal finance?

<p>To allocate income to cover expenses, savings, and investments (A)</p> Signup and view all the answers

What is the purpose of calculating the employer's UIF contribution?

<p>To contribute the correct amount to the UIF on behalf of the employee. (D)</p> Signup and view all the answers

What is the primary purpose of documenting the comparison process and presenting the findings?

<p>To communicate the results to stakeholders (A)</p> Signup and view all the answers

What is the primary purpose of identifying all sources of income in personal finance?

<p>To develop a comprehensive financial plan (A)</p> Signup and view all the answers

What is the purpose of Unemployment Insurance Fund (UIF)?

<p>To provide financial support to employees who lose their jobs (C)</p> Signup and view all the answers

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

<p>Calculating the net income (C)</p> Signup and view all the answers

What is the primary purpose of a tariff system?

<p>To regulate the cost of goods and services (C)</p> Signup and view all the answers

What is the importance of comparing predicted and actual values in a budget?

<p>It helps to identify areas for improvement and adjust the budget as necessary (A)</p> Signup and view all the answers

What is the primary purpose of calculating the gross income of an individual?

<p>To understand the total income earned from all sources (C)</p> Signup and view all the answers

What is the graphical representation of a tariff system?

<p>Step-function graph (B)</p> Signup and view all the answers

What is the purpose of assessing the risks of each option?

<p>To identify potential risks and their impact (C)</p> Signup and view all the answers

What is the primary purpose of savings in personal finance?

<p>To set aside a portion of income for future use or emergencies (D)</p> Signup and view all the answers

What is the formula to calculate the percentage change in expenditure?

<p>Percentage Change = (Actual Value - Previous Value) / Previous Value (A)</p> Signup and view all the answers

What is the primary purpose of investments in personal finance?

<p>To use income to purchase assets that can generate additional income or appreciate in value over time (C)</p> Signup and view all the answers

What is the importance of setting financial goals?

<p>It helps to create a plan to achieve financial objectives (A)</p> Signup and view all the answers

What is the purpose of a cost-benefit analysis?

<p>To compare the costs and benefits of different options (B)</p> Signup and view all the answers

What is the primary purpose of using mathematical tools and techniques in the decision-making process?

<p>To organize and visualize the data to make an informed decision (B)</p> Signup and view all the answers

What is the importance of monitoring and adjusting a budget?

<p>It helps to identify areas for improvement and adjust the budget as necessary (D)</p> Signup and view all the answers

What is the purpose of a risk assessment?

<p>To evaluate the potential risks associated with different options (C)</p> Signup and view all the answers

Which of the following is a step in the decision-making process?

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

What is the purpose of a plan for taxes?

<p>To ensure compliance with tax laws and set aside money for taxes (D)</p> Signup and view all the answers

What is the formula to calculate the monthly cost in a non-prepaid electricity tariff system?

<p>Monthly Cost = Service Charge + Network Charge + (Rate per Unit x Units Used) (C)</p> Signup and view all the answers

What is the first step in comparing two options?

<p>Establish the criteria for comparison (D)</p> Signup and view all the answers

What do flat line sections on a graph represent in a tariff system?

<p>Periods where the cost remains constant (B)</p> Signup and view all the answers

What is the formula to calculate the percentage increase?

<p>Percentage Increase = (New Value - Old Value) / Old Value (B)</p> Signup and view all the answers

What is the purpose of comparing predicted and actual values?

<p>To evaluate the effectiveness of a budget or plan (C)</p> Signup and view all the answers

What is the primary purpose of a budget?

<p>To create a plan for how to allocate income to cover expenses, savings, and investments (B)</p> Signup and view all the answers

What is the break-even point in a business?

<p>The point where the business starts making a profit (A)</p> Signup and view all the answers

What is the formula to calculate the break-even quantity?

<p>Break-even quantity = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) (B)</p> Signup and view all the answers

What is the graphical representation of the break-even point?

<p>The intersection of two graphs, one representing costs and the other representing income (B)</p> Signup and view all the answers

What is the importance of break-even analysis?

<p>To determine the point at which a business starts making a profit (B)</p> Signup and view all the answers

What is the formula to calculate the total cost of a batch?

<p>Total Cost = Fixed Costs + (Variable Cost per Unit x Number of Units Sold) (C)</p> Signup and view all the answers

What is the cost price per item?

<p>The total cost of a batch divided by the number of items in the batch (A)</p> Signup and view all the answers

What is the method of determining the break-even point using equations?

<p>Equation method (C)</p> Signup and view all the answers

What is the income equation?

<p>Income = Selling Price per Unit x Number of Units Sold (A)</p> Signup and view all the answers

What is the cost equation?

<p>Total Cost = Fixed Costs + (Variable Cost per Unit x Number of Units Sold) (C)</p> Signup and view all the answers

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

<p>To determine the point at which a business starts making a profit and avoid losses (A)</p> Signup and view all the answers

What is the purpose of calculating the difference between predicted and actual values in a budget?

<p>To determine the accuracy of predictions (C)</p> Signup and view all the answers

Which of the following is a step in calculating the cost price of an item?

<p>Determining the quantity of ingredients needed (D)</p> Signup and view all the answers

What is the purpose of increasing the cost price to account for other costs not considered?

<p>To ensure all costs are covered (D)</p> Signup and view all the answers

What is the formula for calculating the cost of a specific quantity needed?

<p>Cost of Quantity Needed = (Quantity Needed / Packet Size) x Packet Price (A)</p> Signup and view all the answers

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

<p>To compare the financial performance over a specific period (C)</p> Signup and view all the answers

What is the formula for calculating the net income?

<p>Net Income = Total Income - Total Expenditure (D)</p> Signup and view all the answers

What is the purpose of comparing the values of income and expenditure over time?

<p>To identify improvements or declines in performance (D)</p> Signup and view all the answers

What is the formula for calculating the change in value over time?

<p>Change = Value in Later Period - Value in Earlier Period (D)</p> Signup and view all the answers

What is the importance of considering additional costs not covered in the initial cost price?

<p>To ensure all costs are covered (D)</p> Signup and view all the answers

What is the purpose of dividing the total cost by the number of items in the batch?

<p>To calculate the cost price per item (C)</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 principal, while compound interest is calculated on the principal and interest. (A)</p> Signup and view all the answers

What is the formula to calculate the total amount in a compound interest scenario?

<p>P × (1 + r)^t (D)</p> Signup and view all the answers

What is the graphical representation of compound interest?

<p>A curve showing exponential growth. (A)</p> Signup and view all the answers

What is the key difference between a transactional account and a fixed deposit account?

<p>Transactional accounts have a variable balance, while fixed deposit accounts have a fixed balance. (C)</p> Signup and view all the answers

What is the total cost of a loan or hire purchase agreement?

<p>The sum of the deposit, all payments, and any interest or fees. (A)</p> Signup and view all the answers

What is the purpose of a bank fee structure?

<p>To determine the cost of a transaction. (B)</p> Signup and view all the answers

What is the difference between a loan and a hire purchase agreement?

<p>A loan is for borrowing money, while a hire purchase agreement is for purchasing an item. (C)</p> Signup and view all the answers

What is the formula to calculate the interest on a loan or hire purchase agreement?

<p>P × r × t (D)</p> Signup and view all the answers

What is the purpose of comparing bank charges?

<p>To determine the cheapest bank fees. (A)</p> Signup and view all the answers

What is the formula to calculate the fee in a bank fee structure?

<p>Fixed cost + (Percentage of transaction value) (D)</p> Signup and view all the answers

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