16.1 personal financial statements Flashcards
assets - liabilites = _______
net worth (owner’s equity)
savings accounts and a home are examples of
- liabilities
- assets
- net worth
- cash outflow
assets
the amount of money that could be claimed if all assets were sold for cash and all debts were paid off
net worth
What is the first part of a cash flow statement?
cash inflows / income
a listing of a person or family’s ____ is the second items on a balance sheet
liabilities
if you set ____, make wise decisions, buy wisely, and live within your income, you will be a successful money manager
if you set goal, make wise decisions, buy wisely, and live within your income, you will be a successful money manager
a family has $189,000 in assets and $87,000 in debts. What is their net worth?
$102,000
money management involves getting the most for your money through _____ planning
money management involves getting the most for your money through careful planning
what are some examples of cash outflows?
- rent
- mortgage payment
- food
- clothing
- utilities
- telephone
- transportation
- personal care
- recreation/entertainment
_____ ahead and deciding what is important will help you have money for things you enjoy
planning ahead and deciding what is important will help you have money for things you enjoy
give some examples of cash inflows
- net income / take home pay
- interest income
- rental income
if you spent less than you had in income then…..
you have an increase in your net worth, this extra money most likely will be kept in your savings account for the future
what do cash outflows represent?
money paid out by a person or family during a specific period, normally a month
What reports what a person or family owns as well as owes?
balance sheet
calculate
assets: ______
liabilities: $5,600
net worth: $67,800
assets = $73,400
67800+5600=73400
how much time does a cash flow statement cover?
usually a month
According to the Bureau of the Census, what are the main assets in US households?
- motor vehicles
- homes
- savings accounts
- US savings bond
- certificates of deposit
- mutual funds
- stocks
- corporate bonds
- retirement accounts