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Practice Management
Vocab for Final
Question | Answer |
---|---|
The person responsible for checking the accuracy of your income statement and balance sheet. | Auditor |
Something that puts money in your pocket, feeds you, part of your balance sheet, and will get you out of the rat race. | Asset |
A snapshot of you assets and liabilities. | Balance Sheet |
When you don't have enough income or cash to pay your bills. | Bankruptcy |
Cash or something of an agreed-upon value. | Capital |
The difference between what you bought an invetment for and what you sold it for (adjusted for improvements and ordinary usage). | Capital Gain Loss |
The direction of your cash,cash coming in (income) and cash going out (expenses) | Cash Flow |
A time certificate representing a sum of money deposited for a set length of time at a set rate of interest. | Certificate of Deposit |
Money owed to another, is shown as a liability on the balance sheet and the monthly payment as an expense on the income statement. | Debt |
A distribution of profits of a company to the shareholders. | Dividend |
Expenses, often unnecessary or larger than need be, that take money out of your pocket. | Doodads |
A percentage of the purchase price an investor pays for an investment, the remainder of the price is then borrowed (debt). | Down Payment |
A nice way to say you're fired. | Downsized |
An ultimate goal. | Dream |
Your passive income from your assets are greater than your living expenses. | Fast Track |
A form showing your income and expenses over a period of time, also called a profit and loss statement. | Income Statement |
Amounts of money that are owed to others, aka debt, it will take money out of your pocket and it you. | Liabilities |
Reducing this may reduce your expenses and increase your paycheck. | Liabilities |
When you finance real estate, the property you are financing is used as collateral or security against the amount of money you are financing. | Mortgage |
A variety of stocks, bonds, or securities, grouped together, managed (bought and sold) by professional investment company and purchased by individual investors through shares. | Mutual Fund |
Big deals or small deals. | Opportunity |
Income generated from your investments such as interest, dividends, and real estate rentals, withh minimal work. | Passive Income |
Money works for you instead of you working for money. | Financial Freedom |
The endless cycle of never seeming to get ahead financially, no matter how hard you work, where the middle class and poor spend their days until they become financially literate. | Rat Race |
Return on capital, as an annual percentage, from an investment. | Return on Investment |
A corporate action where the number of shares you own increases and the price per share decreases. | Shares Split |
Ownership in a corporation. | Stock |
Where you find buyers for your investments in an ever changing economy. | The Market |
When you can live indefinitely off of your investment income. | True Wealth |