Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
money management
|
day-to-day financial activities necessary to manage current perosonal economic resources while working toward long-term financial security
|
|
|
safe deposit box
|
a priate storage area at a financial institution with maxiumum security for valuables
|
|
|
balance sheet
|
a financial statement that reports what an individual or a family owns and owes; also called a net worth statement
|
|
|
assets
|
cash and other property with a monetary value
|
|
|
liquid assets
|
cash and items of value that can easily be converted to cash
|
|
|
liabilities
|
amounts owed to others
|
|
|
current liabilities
|
debts that must be paid within a short time, usually less than a year
|
|
|
long-term liabilities
|
debts that are not required to be pain in full until more than a year from now
|
|
|
net worth
|
the difference between total assets and total liabilities
|
|
|
insolvency
|
the inability to pay debts when they are due because liabilities far exceed the value of assets
|
|
|
cash flow
|
the actual inflow and outflow of cash during a given time period
|
|
|
cash flow statement
|
a financial statement that summarizes cash receipts and payments for a given period
|
|
|
income
|
inflows of cash to an individual or a household
|
|
|
take-home pay
|
earnings after deductions for taxes and other items; also called disposable income
|
|
|
discretionary income
|
money left over after paying for housing, food and other necessities
|
|
|
budget
|
a specific plan for spending income
|
|
|
creating and implementing a budget
|
1. assesing your current situation
2. planning your financial direction 3. implementing your budget 4. evaluating your budgeting program |
|
|
budget variance
|
the difference between the amount budgeted and the actual amount received or spent
|
|
|
deficit
|
the amount by which actual spending exceeds planned spending
|
|
|
surplus
|
the amount by which actual spending is less than planned spending
|
