Financial Key Terms
Define Fraud
A crime that may involve an individual being deceitful to gain a financial benefit.
A bank account is
An account where money can be deposited or withdrawn
What is Interest Rate
An interest rate is either the cost of borrowing money or the reward for saving it. It is calculated as a percentage of the amount borrowed or saved.
Why do you have to register a business name
it's considered as a legal requirement and it's a way that people can identify your business
Define Financial Performance
How well a business is able to control its expenses and revenue over a period of time and can be determined through overall profits and losses.
What can accounting software do
They allow business owners to manage their accounting easily online
Define Bank Fees
Imposed by financial institutions on their personal and business customers for account set-up, maintenance, and minor transactional services.
What is Progressive tax rate
The tax rate increases with the amount the person earns.
Define Cash Book
Cash books are manual or electronic books where all cash transactions within a business are recorded.
What can financial control systems do
Control how much money the business spends
What is the importance for budgeting in a business
Predicting or estimating the business’s financial performance for a given period in the future.
What are the 5 legal requirements
Work safe insurance, Registering a business name, registering website domain, Trade practices legislation, Business tax compliance
Define Auditing
Assessing a business’s financial information to verify that it is true and accurate.
What is overdraft facilitates
They are agreements between banks and businesses or individuals, that allow a bank account to be withdrawn below zero
Why is it important for a business to establish a bank account
A bank account allows a business to measure financial performance (expenses, revenue, profit, losses. Allows tax return to be calculated properly Allows personal and business spending to be separated.
What is Income Tax for individuals
The tax an individual must pay which is calculated from their income.
Define Financial Control System
The processes methods and tools that allows a business to accurately monitor and manage its financial performance
What is the importance of establishing record keeping strategies
enables a business to accurately keep track of financial transactions, enables a business to prove financial transactions that need to be reported when lodging tax returns, enables a business to form accurate business reports
What are Overdraft facilities
They are agreements between banks and businesses or individuals, that allow a bank account to be withdrawn below zero
What is the obligation for a business if a product needs to be repaired, replace and refund
If a product or service you buy fails to meet a consumer guarantee, you have the right to ask for a repair, replacement or refund under the Australian Consumer Law. The remedy you're entitled to will depend on whether the issue is major or minor.