AND SOLUTIONS RATED A+
✔✔Current Assets - ✔✔Owned by the business that are likely to change on a regular
basis
✔✔Fixed Assets - ✔✔Owned by the business that aren't likely to change on a regular
basis
✔✔Current Liabilities - ✔✔Owed by the business that are likely to change on a regular
basis
✔✔Fixed/Non-current Liabilities - ✔✔Owed by the business that aren't likely to change
on a regular basis
✔✔Net assets - ✔✔Non-current assets + current assets - (current liabilities + long term
liabilities)
✔✔Depreciation - ✔✔
✔✔Profit or loss for the year - ✔✔gross profit - expenses + other income
✔✔Gross profit - ✔✔sales revenue - cost of goods sold
✔✔Cost of goods sold - ✔✔opening inventory + purchases - closing inventory
✔✔Sales Turnover/Sales Revenue - ✔✔Number of units sold x selling price
✔✔Prepayments - ✔✔when an expense is paid in advance
✔✔Accruals - ✔✔when an expense is paid after
✔✔Tangible assets - ✔✔An asset that can be touched
✔✔Intangible assets - ✔✔An asset that cannot be touched
✔✔Childhood (life stages) - ✔✔- Limited Needs
- Mainly reliant on parents
- May want to buy sweets or toys
✔✔Teenager (life stages) - ✔✔- Want to be more independent
- Slightly less reliant on parents as want to socialise away from family
✔✔Young Adult (life stages) - ✔✔- University or starting a career
, - Looking to be more independent
- Buying a car and buying or renting a flat or house
- Looking to settle down and maybe get married or start a family
✔✔Middle age (life stages) - ✔✔- Support Family
- Start saving for children's futures
- Look to improve own lifestyle
- Enjoy access to additional money to spend on luxuries such as going abroad
✔✔Old age (life stages) - ✔✔- Fewer dependents
- May downsize life e.g. Move to a smaller house
- Fewer financial needs for assets but may be higher for services such as health care
✔✔Debt - ✔✔Money owed
✔✔Credit Rating - ✔✔A score given to individuals on how likely they are to repay debts
based upon their previous actions.
✔✔Bankrupt - ✔✔When an individual or an organisation legally states its inability to
repay debts
✔✔Solvent - ✔✔The ability to meet day-to-day expenditure and repay debts
✔✔Current account - ✔✔An account with a bank or building society designed for
frequent use
✔✔Standard Current Account - ✔✔Advantages
- No charges on credit balances
- Offers the holder a wide range of facilities including a cheque book, debit/cash card
and possibly an overdraft facility
Disadvantages
- Potentially high charges on overdraft
- No additional Perks
✔✔Premium Current Account - ✔✔Advantages
- No charges on credit balances
- Offers additional perks as well as the standard features of a current account
Disadvantages
- Additional monthly charge is frequently applied
- The package may not offer value for the money or mee the needs of the individual
account holder.
✔✔Basic Current Account - ✔✔Advantages
- Available to customers with a low credit rating
-Offers an easy first step for individuals to gain access to basic banking facilities