16.1 personal financial statements Flashcards

1
Q

assets - liabilites = _______

A

net worth (owner’s equity)

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2
Q

savings accounts and a home are examples of

  • liabilities
  • assets
  • net worth
  • cash outflow
A

assets

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3
Q

the amount of money that could be claimed if all assets were sold for cash and all debts were paid off

A

net worth

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4
Q

What is the first part of a cash flow statement?

A

cash inflows / income

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5
Q

a listing of a person or family’s ____ is the second items on a balance sheet

A

liabilities

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6
Q

if you set ____, make wise decisions, buy wisely, and live within your income, you will be a successful money manager

A

if you set goal, make wise decisions, buy wisely, and live within your income, you will be a successful money manager

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7
Q

a family has $189,000 in assets and $87,000 in debts. What is their net worth?

A

$102,000

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8
Q

money management involves getting the most for your money through _____ planning

A

money management involves getting the most for your money through careful planning

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9
Q

what are some examples of cash outflows?

A
  • rent
  • mortgage payment
  • food
  • clothing
  • utilities
  • telephone
  • transportation
  • personal care
  • recreation/entertainment
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10
Q

_____ ahead and deciding what is important will help you have money for things you enjoy

A

planning ahead and deciding what is important will help you have money for things you enjoy

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11
Q

give some examples of cash inflows

A
  • net income / take home pay
  • interest income
  • rental income
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12
Q

if you spent less than you had in income then…..

A

you have an increase in your net worth, this extra money most likely will be kept in your savings account for the future

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13
Q

what do cash outflows represent?

A

money paid out by a person or family during a specific period, normally a month

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14
Q

What reports what a person or family owns as well as owes?

A

balance sheet

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15
Q

calculate

assets: ______
liabilities: $5,600

net worth: $67,800

A

assets = $73,400

67800+5600=73400

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16
Q

how much time does a cash flow statement cover?

A

usually a month

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17
Q

According to the Bureau of the Census, what are the main assets in US households?

A
  • motor vehicles
  • homes
  • savings accounts
  • US savings bond
  • certificates of deposit
  • mutual funds
  • stocks
  • corporate bonds
  • retirement accounts
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18
Q

keeping track of how much is ____ on living expenses will help you plan and control your spending

A

keeping track of how much is spent on living expenses will help you plan and control your spending

19
Q

calculate:

assets: $7,000
liabilities: $1,800

net worth: _______

A

$5,200

7000-1800=5200

20
Q

if you spent more than you had in income then….

A

you either had to use some of your savings or credit to pay the additional expenses

21
Q

amounts owed to others

A

liabilities

22
Q

What are some examples of liabilities found on a personal balance sheet?

A
  • home mortgage
  • education loan
  • credit card balance
  • car loans
  • personal loans
23
Q

reports net wages and other income along with spending for a period

A

cash flow statement

24
Q

if you learn to manage your money well, you will be able to ____ what you really want

A

if you learn to manage your money well, you will be able to buy what you really want

25
Q

What are some characteristics of a wise money manager?

A
  • set goals
  • make wise decisions
  • buy wisely
  • live within your income
26
Q

listed on the second part of a cash flow statement

A

cash outflow

27
Q

What are some examples of assets on a personal balance sheet?

A
  • house
  • automobile
  • household items and furniture
  • personal computer
  • jewelry
  • investments (stocks, bonds, etc)
  • clothing
  • rare coins
  • savings account
  • checking account
28
Q

The current value of all ____ of an individual or family is the first thing stated on a balance sheet

A

assets

29
Q

items of value

A

personal assets

30
Q

how often are balance sheets prepared?

A

monthly or quarterly (every 3 months)

31
Q

what is another name for cash outflows?

A

expenditures

32
Q

a balance sheet is a helpful way to measure financial ____

A

strength

33
Q

cash inflows - ______ = net cash flow

A

cash inflows - cash outflows = net cash flow

aka

total income - total spending = net cash flow

34
Q

the money you have available to spend as a result of working or from other income, such as interest earned on your savings

A

cash inflows

35
Q

calculate

assets: $26,000
liabilities: _____

net worth: $19,000

A

liabilites - $7,000

26000-19000=7000

36
Q

the amount of a paycheck after taxes and other payroll deductions

A

net pay / take-home pay

37
Q

What are some deductions taken out of your paycheck?

A
  • retirement contributions (401k)
  • charges for health benefits/insurance
  • local, state and federal taxes
38
Q

your _____ pay is the amount you actually have available to spend

A

take-home pay / net pay

39
Q

a payment for rent represents

  • a cash inflow
  • a cash outflow
  • a liability
  • an asset
A

a cash outflow

40
Q

What two financial statements are used in money management?

A

the balance sheet

the cash flow statement

41
Q

a record of assets and liabilities at a point in time

A

balance sheet

42
Q

amounts spent for food, clothing, transportation, and other living costs

A

cash outflows

43
Q

the day to day financial activities associated with using limited income to satisfy your unlimited needs and wants

A

money mangement