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;
22 Cards in this Set
- Front
- Back
|
Cash |
Type of expenditure that is probably the hardest for an individual to track |
|
|
Tangible Asset |
A physical asset, such as furniture or a car, is called this |
|
|
Record Keeping System |
The best type to use in maintaining financial records is one you will actually use |
|
|
Debt Ratio |
Found by dividing total debt or liabilities by total assets |
|
|
Insolvency |
The condition in which you owe more money than your assets are worth |
|
|
Fair Market Value |
The current value of assets. It is what an asset could be sold for rather than what it cost or what it will be worth sometime in the future |
|
|
Variable |
An expenditure over which you have no control, are not obligated to make, and may vary from month to month |
|
|
Fixed Expenditure |
An expenditure over which you have no control and are obligated to make |
|
|
Personal Income Statement |
Calculation is based on actual cash flows |
|
|
Liabilities |
Financial debts and obligations for which you owe |
|
|
Balance Sheet |
This financial planning document is used to measure your level current wealth |
|
|
Income Statement |
A statement that records where your money has come from and where it has gone over some period of time |
|
|
Expense Separation |
When operating business out of your home be sure to keep expenses seperate |
|
|
Cash Budget |
A plan for controlling and forecasting your cash inflows and cash outflows |
|
|
Cash Flows |
The primary consideration for the owner of a young business that is expanding rapidly |
|
|
Ledger |
A book or notebook set aside to record expenditures |
|
|
Investment Asset |
Unlike a normal asset this normally appreciates over time |
|
|
Net Worth |
Found by subtracting your liabilities from your assets |
|
|
Savings Ratio |
To determine how much income is available for future monetary needs as well as for investment |
|
|
Blue Book |
If you are trying to buy a used car, you would most likely find a listing of used car prices in this |
|
|
Variable Expenditure |
An expenditure over which you can control over time and which you can manage |
|
|
Current Ration |
Found by dividing monetary assets by current liabilities and is a good measure of liquidity |
