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2.03-2.05 PF
Statement of Financial Position, Income & Expense Statement, Spending Plan
Term | Definition |
---|---|
Expense | Money Spent. |
Gross Income | An individual's income earned as salary or wages before taxes and other deductions. |
Income | Money Received. |
Income & Expense Statement | Lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or 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 loan used when purchasing housing. |
Net Gain | When income is greater than 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 a person or household owns. |
Expense | Money Spent. |
Income | Money received. |
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 for today. |
Monetary asset | Assets that can be quickly and easily converted into cash. |
Net worth | A measure of financial wealth and indicates the 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 Asset | 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 expenses over a period of time . |