Personal Finance and Banking
This is The current percentage rate of GST applied to most goods
10%
Based in Sydney, this is Australia's primary and largest stock exchange market
What is the ASX / Australian Securities Exchange?
This critical business document lists assets, liabilities, and owner's equity at a specific point in time
What is a balance sheet
This is the most common and simplest business structure in Australia, where one individual trades under their own name and carries all financial risk
What is a sole trader
This financial document tracks a business’s income and expenses over a specific period, such as a month or year, to calculate final profit or loss
What is a profit and loss statement / income statement
This is a Three-digit number between 0 and 1200 representing your creditworithness
Credit score
This term refers to the payment made by a corporation to its shareholders, usually as a distribution of profits
What is a dividend
It is the central bank of Australia, responsible for setting the nation's official cash interest rate
What is the RBA / Reserve Bank of Australia
To trade legally under a specific brand name in Queensland, you must register this specific "BN" with ASIC
What is a Business Name
This forward-looking document forecasts how money will move into and out of a business's bank account over the next few months to ensure they can pay bills
What is a cash flow forecast
This type of bank account earns you higher intrest but restricts how often you can withdraw money
deposit/ savings account
To reduce financial risk, an investor should use this strategy of spreading money across different asset classes
What is diversification
This economic term describes a general and sustained increase in prices across the Australian economy
What is inflation
Unlike sole traders, shareholders in a Proprietary Limited (Pty Ltd) company enjoy this type of protection, meaning their personal assets are safe if the business goes bust
What is limited liability
These are the ongoing costs of running a business that cannot be easily linked to a specific product, such as factory rent or insurance
What are fixed costs / overhead
The name of Australia’s independent financial regulatory body that ensures fair and transparent financial markets
ASIC/ Australian Securities and Investments Commission
This specific type of investment fund allows everyday Australians to buy an entire basket of shares or assets in a single transaction on the stock market
What is an ETF / Exchange-Traded Fund
This financial metric calculates the exact point where a business's total revenue perfectly matches its total operating costs
What is the break-even point
This legal structure involves two or more people sharing profits and losses, and they should ideally sign an agreement outlining their responsibilities
What is a partnership
Calculated by dividing gross profit by sales revenue, this financial ratio shows the percentage of sales revenue kept after paying for the cost of goods sold
What is the gross profit margin?
When interest is earned on both of your intial principal and interest rates
Compound intrest
This tax is levied on the profit made from selling an asset like investment property or shares, though a 50% discount applies if held for over a year
What is Capital Gains Tax / CGT
This term refers to a financial scenario where a business has profitable sales on paper but runs out of actual cash to pay immediate bills
What is a cash flow crisis / insolvency
Under Australian Consumer Law, businesses must provide these automatic legal guarantees that a product will work, be safe, and match its description
What is a consumer guarantee / statutory warranty
This basic accounting equation states that a business's assets must always equal the sum of these two other financial categories
What are liabilities and owner's equity