Column 1

1. Bank Overdraft
2. Accrued Expenses
3. Factoring
4. Medium Term Loan
5. Leasing

Column 2
A) Raising cash by selling your debtors to a bank.
B) Raising cash by selling shares to investors.
C) Renting an asset.
D) Medium term loan received from a bank.
E) Paying for an item in installments and owning it when the last
installment is paid.
6. Hire Purchase
F) Using a service now and paying for it at a later date (electricity,
phone)
Q1. Match the terms and explanations in the boxes provided below:

Q2. Indicate if the following statements are either true or false:

A
B
C
D
E

Statement
Hire Purchase interest paid by a company is tax deductable.
Leasing can reduce the owners control over their business.
Interest is not charged on bank overdraft.
Telephone, heating and electricity can often be financed by accrued
expenses.
When the ECB increases interest rates, the repayments on a variable
rate loan also increase.

True/False

Q3. Match the terms and explanations in the boxes provided below:
Column 1
1. Bank Statement
2. Standing Order
3. Debit Card
4. Paypath
5. ATM
6. PIN

Column 2
A) Document showing everything from lodgements, withdrawals and
balances on a current account.
B) Personal Identification Number
C) Bank taking a fixed amount from current account at regular intervals
to pay an amount owed.
D) Automated Teller Machine
E) Employees wages paid directly into your current account.
F) Card used to pay bills. Amount is deducted by the bank and paid into
the shops account