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Chpt. 16 GB

Personal Financial Statements

QuestionAnswer
What is money management? refers to the day-to-day financial activities associated with using limited income to satisfy your unlimited needs and wants.
What are personal assets? Items of value.
What is net worth? The difference between a person's assets and liabilities.
What is a cash flow statement Reports net wages and other income along with spending for a period.
What are fixed expenses? Costs that occur on a regular basis and are for the same amount each time.
What are variable expenses? Involve living costs that differ each time and may not be as easy to estimate.
What is an allowance? the amount of money you plan to use for a certain budget category.
What is Buget Variance? Any difference between actual spending and budgeted amounts.
What is a financial plan? A report that smmarizes your current financial condition, acknowledges your financial needs and sets a direction for your future financial activities.
What is estate planning? invloves the accumulation and management of property during one's lifetime and the distribution of one's property at death.
Created by: main92 on 2009-11-02




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