Economics Terminology.trm 2-3

All terminology from terms 2-3.

Income Statement

Shows profit or loss

Balance Sheet

Shows assets/liabilities

Own Capital

The money and personal assets an owner puts into the business

(No debt)

Borrowed Capital

Money obtained from outside lenders

(Added Interest)

Money Capital

Funds to start & expand

Real Capital

Physical assets

(e.g. machinery, buildings, equipment)

CRT

Cash Register Tape

POS

Point of Sale, System

Sundry Accounts

Miscelaneous financial transactions are kept here

Remuneration

The total payment or compensation a person receives

(Salaries & wages)

GDP

Gross Domestic Product

Gross Domestic Product

The total value of all finished goods/services in a country

LRA

Labour Relations Act

(1995)

BCEA

Basic Conditions of Employment Act

EEA

Equal Employment Act

Entreprneureship

A person who creates and manages a business for profit

Market

A place where goods are exchanged

Formal Markets

Supermarkets and stock exchanges happen

Informal Markets

Street vendors & online marketplaces

Factor Market

Exchange of factors of production

CRR

Cash Register Roll

CRJ (Cash Receipts Journal)

A journal used to record all cash and cash equivalents that flow into the business

CPJ (Cash Payments Journal)

A journal used to record all cash outflows, money spent, or payments made in the business

General Ledger

The master book that holds all financial transactions for a business

Double-Entry

A record-keeping system where every financial transaction is logged in at least two separate accounts

EFT

Electronic Funds Transfer

Bank Statement

An official document issued by a bank that summarizes all financial activity in a bank account over a specific time

Limited Liability

The owners personal assets are protected from business debts

Unlimited Liability

The owners personal assets may be used to pay business debt

Continuity

The ability for the business to continue even after the owner dies

Split Transactions

One Tansaction, but it includes more than one item

(Pty) Ltd

Proprietary Limited

Ltd

Limited

JSE

The Johannesburg Stock Exchange