2.1
a written plan for giving, saving, and spending
What is a Budget?
money received for work, as a gift, or through investments
What is Income?
a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero
What is a Zero-Based Budget?
a record that summarizes all of the income and outgo (spending) over a certain time period
What is a Cash-Flow Statement?
income that comes in at different amounts or at different times, or both
What is Irregular Income?
expense that remains the same from month to month
What is Fixed Expense?
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
What is Net Income?
earnings based on a percentage of the sales made
What is Commission?
expense that varies in dollar amount from month to month but that you can expect to have every month
What is Variable Expense?
the amount you earn before taxes and other payroll deductions
What is Gross Income?
expense that occurs at various times throughout the year and tends to be in large, lump sums
What is Intermittent Expense?
expense for things you don’t need
What is Discretionary (Nonessential) Expense?