Financial Planning
Phases of Economic Cycles
Assets and Liabilities
Cash Budgets
Taxes
100
Define your financial goals.
What is the first step in the financial planning process?
100
Real GDP increases until it hits a peak.
What is expansion?
100
Held in form of cash.
What is liquid assets?
100
Only transactions involving actual cash inflows or actual cash outlays are recorded.
What is cash basis?
100
Vary according to reported taxable income and filing status
What is tax rates?
200
Implement financial plans and strategies
What is the 3rd step in financial planning
200
Expansion end and a contraction begins.
What is Peak?
200
Acquired to earn a return.
What is investments?
200
Earnings received as wages, salaries, bonuses, commissions, interest and dividends, or proceeds form the sale of assts
What is income?
200
Deductions from a taxpayer's tax liability that directly reduces his or her taxes due.
What is tax credits?
300
Periodically develop and implement budgets to monitor and control progress toward goals.
What is the 4th step in financial planning?
300
Real GDP falls
What is contraction?
300
Movable and used in everyday life
What is personal property?
300
Money spent on living expenses and to pay taxes, purchase assets or repay debt.
What is expenses?
300
Required by a taxpayers to file their returns.
What is tax forms?
400
Use financial statements to evaluate results of plans and budgets, taking corrective action as required.
What is the 5th step in financial planning?
400
Contraction ends and an expansion begins?
What is trough?
400
Immovable assets
What is real property?
400
Excess amount of income over expenses.
What is cash surplus?
400
Paid on the next dollar of taxable income.
What is marginal tax rate?
500
Develop financial plans and strategies to achieve goals.
What is the 2nd step in financial planning?
500
General price level is increasing.
What is inflation?
500
Due within one year of the date of the balance sheet.
What is current or short term liabilities?
500
Excess amount of expenses over income.
What is cash deficit?
500
Larger the amount of taxable income higher the rate at which it is taxed.
What is progressive tax structure.
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