Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Financial Managment 1 > Ch. 7 > Flashcards

Ch. 7 Flashcards

0
Q

You must do a written ____ _____ every month

A

Cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Money is ____

A

Active

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do u do with your checkbook?

A

You have to keep it balanced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Whats overdrafts?

A

Sign of crisis living and sloppy, lazy money habits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Use what kind of checks if necessary?

A

Duplicate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If not managed and made to behave the ___ card and the ____ card are certain to become budget busters

A

Debit, ATM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are four reasons people hate the word budget?

A
  1. Has a straight jacket connotation
  2. It’s been used to abuse them
  3. They’ve never had a budget that worked
  4. Paralysis from fear of they will find
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the four reasons cash flow plans don’t work..

A
  1. Leave things out
  2. Over complicate your plan
  3. Don’t actually do it
  4. Don’t actually live on it
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What kind of money goes farther?

A

Managed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What can a written plan all do? (5)

A
  1. Remove management by crisis from your finances
  2. Can remove money fights from marriages
  3. Remove shame, guilt and fear that may be dealing with buying food or clothing
  4. Removes many of the overdrafts from your life, and stress
  5. Will show if your overspending on a certain area
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Budget

A

Another name for cash flow plan, Every dollar you make is assigned to a specific category

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Irregular income form

A

Form used by persons earning an inconsistent monthly income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Monthly cash flow form

A

Form used to do a budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Duplicate checks

A

Helps people who forget to record checks in their register after writing them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Reconcile

A

To find out if the balance in your checking registry matches the balance reported on the bank statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Currency

A

A system of money in general use in a particular country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Whats active

A

Money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If not managed these can be considered budget busters

A

ATM, debit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Carbon checks

A

Have a second copy behind them, made of special paper, which then makes a copy of each check as you write the,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Discipline, whats the key to wealth building?

A

Used for behavior, be consistent over time (discipline)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Envelope system, what are the catergories

A

Used to store cash for monthly expenses, help people manage their monthly finances , categories food, entertainment, gas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Whats hoarding

A

Keeping unneeded items and keeping them

24
Q

Impulse purchase

A

To buy something without thinking about it

25
Q

Persistent

A

Refusing to give up

26
Q

Pro active

A

Controlling a situation by causing something to happen rather than waiting to respond to it after it happens

27
Q

Procrastinate

A

Waiting until the last minute

28
Q

Zero based budget

A

assigns an expense to every dollar of one’s income

29
Q

You need to do a zero based budget….t or f

A

T

30
Q

You need to reconcile your bank statement within 72 hours of receiving it…t or f

A

T

31
Q

A budget will be the same each month… T or f

A

F

32
Q

People who don’t earn a consistent salary monthly, don’t have to do a budget …t or f

A

F

33
Q

You will pay interest on debit card purchases…..t or f

A

F

34
Q

Whats the easiest and most powerful plan? And what do you use?

A

Zero based, using the envelope system

35
Q 
Your monthly budget should include..
A. Fired expenses 
B. variable expenses 
C. Money to blow
D. All the above
A

D

36
Q 
Doing a budget does not:
A. Lead to an increase in arguments
B. make your money go farther
C. Show if your overspending in an area
D. Remove guilt, shame and fear sometimes associated with purchases
A

A

37
Q 
A written budget should be done every 
A. Month
B. week
C. 3 months
D. 6 months
A

A

38
Q 
What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two?
A. Error 
B. checks that didnt clear
C. Deposits that did not post
D. All the above
A

D

39
Q 
Bounced checks are a sign of \_\_\_ living
A. Normal
B. crisis
C. Comfortable
D. Both A and B
A

B

40
Q

How do you complete a zero based budget

A

Income- exspense=0

41
Q

What are some reasons why the balance in your checkbook registry might not match the balance on your bank statement..

A

Fees, checks not cashed

42
Q

Why do you need a written budget even though you know you can afford your expenses ?

A

So you know where your money goes

43
Q

How can a budget help when you are working on baby step 2?

A

Your know where your money’s going

44
Q

How does a budget differ when you have an irregular income vs. a predictable income?

A

The budget varies

45
Q

How do you balance your account

A

Check off what matches in your checkbook, fix inaccuracies, add deposits them subtract withdraws

46
Q

What kinds of things go into a financial plan? Also what else

A

Breaks your expenses into things like, emergencies, insurance
You pick a date to get things done and stick to it

47
Q

Whats a consumer equity sheet

A

Possessions value minus your debt

48
Q

How does income sources work?

A

You list all your incomes then your total is how much you make

49
Q

What are budget busters ?

A

Payments made on a non-monthly basis

50
Q

Do you need to include small expenses on the monthly flow cash plan?

A

Yes it don’t matter how small

51
Q

Whats blow money

A

Is the money you spend on anything you want

52
Q

How should you manage your debt

A

By listing all debts on your plan

53
Q

Whats a recommended percentage?

A

Is how much you should spend on a certain thing, but it varies depending on your income

54
Q

Whats a allocated spending plan?

A

It puts all your money into categories for each pay period.

55
Q

Should you fund your emergency fund first or pay for other things?

A

Emergency fund

Financial Managment 1 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions