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Obj 2.03-2.05 PF2014
Income and expense, Statement of financial position and spending plans
Term | Definition |
---|---|
Expense | Money spent |
Gross income | An individuals income earned as salary or wages before taxes and other deductions |
Income | Money recieved |
Income and expense statement | Lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or a year |
Insurance | A product that transfers risk from an individual to an insurance company or organization |
Mortgage | A payment, usually monthly, applied to the balance of a home load used when purchasing housing |
Net gain | When income is greater that expenses |
Net income | Take home pay |
Net loss | When expenses are greater than income |
Savings | The portion of current income not spent on consumption |
Asset | Items of monetary value of a person or household owns |
Expenses | Money spent |
Income | Money recieved |
Investment asset | Financial assets purchased with the hope that they will generate income and appreciate in value to make it possible to sell at a higher price in the future |
Liability | A debt or obligation owed to others |
Market value | The amount you could realistically sell an asset today |
Monetary asset | Assets that can be quickly and easily converted into cash |
Net worth | A measure of financial wealth and indicates that monetary value of all possessions that a person or household owns, minus the total amounts owed to others |
Statement of financial position | A financial statement that describes an individuals or family's financial condition on a specified date by showing assets, liabilities, and net worth |
Tangible assets | Personal property that was purchased to create a lifestyle or improve your life |
Wealth | A measurement of how much a person or household owns once all debts have been paid |
Spending plan | An income and expense statement sometimes referred to as a budget which records both planned and actual income and expense over a period of time |