Miscellaneous I
Balance Sheet
Cash Flow Statement
Budgeting
Miscellaneous II
100
Describe the type of item(s) that should NOT be kept in a safe deposit box.
Anything you might need to access quickly (night, weekend, holiday), including passports and original powers of attorney.
100
Any item of value that you own.
What is an asset?
100
Income left after taxes, dues, healthcare contributions, etc.
What is net pay or take home pay?
100
After recording actuals and identifying budget variances, what is the final step in the process?
Balance and adjust.
100
Documents that provide information about your current financial position and present a summary of your income and spending.
What are personal financial statements?
200
Give two examples of liquid assets.
Cash, checking account, savings account.
200
Debts that you owe.
What are liabilities?
200
Payments/costs that change from month-to-month.
What are variable expenses?
200
What is the first step in planning a budget?
Setting financial goals.
200
The method of planning how to get the most from your money.
What is money management? (acceptable: budgeting)
300
What is an example of a current liability?
Taxes, utilities, charge accounts.
300
The difference between what you own and owe.
What is net worth?
300
Taxes, union dues, 401 (k) & healthcare contributions, etc.
What are deductions?
300
What should be excluded when you estimate your income?
Estimated bonuses and gifts.
300
Extra money that can be spent or saved.
What is a surplus?
400
How many years should you keep receipts and other records that support items on a tax return?
6-7 years (The IRS has about 6 years to assess additional tax if you under reported your income)
400
The price at which a property would sell.
What is market value?
400
Negative net cash flow (spent more than you had/debt).
What is a deficit?
400
The difference between the budgeted amount and the actual amount spent.
What is a budget variance?
400
What is formula to calculate net worth and the formula to calculate net cash flow?
Assets - Liabilities = Net Worth Income - Total Expenses = Net Cash Flow
500
What will happen at tax time if you claimed more allowances than you should have all year?
You will owe the government money.
500
The inability to pay debts when they are due.
What is insolvency?
500
Money left after paying expenses.
What is discretionary income?
500
Treating savings like an expense.
What is "Paying yourself first?"
500
What are 3 examples of long term liabilities?
Car loan, student loan and mortgage.
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