Personal Financial Statements
Debt.
What is the amount owed to others that is considered a liability.
Specific
Measurable
Action oriented
Realistic
Time based
What is the acronym stand for?
To determine the amount a taxpayer is supposed to pay.
What is the main purpose for preparing a federal income tax return?
Spend less than you receive.
Item of value.
What is a personal asset?
Knowing your current financial status.
What is the process of good money management?
Rent and insurance payments.
What are examples of fixed expenses?
Real estate property tax and personal property tax.
What are taxes on property?
Analyzing your current financial situation.
What is the first step in financial planning?
The difference between a person's assets and liabilities.
What is Net Worth?
A record of assets and liabilities at a point in time.
What is a balance sheet?
Develop a budget, track expenses, and pay bills.
What are the three benefits of a good budgeting system?
Subtracting adjustments to income, deductions, and exemptions from gross income.
What is calculating your taxable income?
Personal Balance and a sheet & cash flow statement.
What is a financial inventory?
Report that summarizes your current financial condition, acknowledgements, your financial needs, and sets a direction for your financial activities.
What is a financial plan?
The amount of a paycheck after taxes and deductions.
What is net pay?
1. Set financial goals
2. Plan budget categories
3. Maintain financial records
4. Evaluate your budget
What are the four main steps for creating a budget?
Purchases, property, wealth, earnings.
What are the four main categories of taxes?
Social security, pensions, individual retirement accounts, annuities.
What are the four common sources of income during retirement?
Tax deduction for the tax payer, a spouse, and each dependent.
What is exemption?
Assets, liabilities, and net worth.
What are the three main parts of a balance sheet?
Savings, food, clothing, household, transportation, health & personal care, recreation of education, and gifts & contribution.
What are the eight common used budget categories?
1. Determine gross income
2. Calculate adjusted gross income
3. Subtract deductions
4. Determine Exemptions
5. Compute taxable income
6. Taxes owed
7. Make tax payments or ask for a refund or credit
What are the seven steps to prepare a federal tax return?
Revise goals, make changes in spending habits, and engage in estate planning to build and distribute property.
What are the activities used to review your financial plan?
Tax sheltered retirement plan in which people can annually invest earnings up to a certain amount.
What is an IRA (Individual Retirement Account)?