Chapter 8 Flashcards

1
Q

a spending and saving plan based on your expected income and expenses

A

budget

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

list the 4 steps to prepare a budget

A

1) estimate income
2) decide how much to save
3) estimate expenses
4) balance your budget

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

list 3 things that lead to financial security

A

1) planning
2) budgeting
3) keeping good records

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

expenses/costs that do not change from month to month, they remain constant, cannot be easily changed or removed from a budget

A

fixed expenses

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

expenses that may change according to needs and short-term goals

A

variable expenses

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

examples of fixed expenses

A

utilities, loan payments (car, mortgage), cell phone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

examples of variable expenses

A

gas, entertainment, food

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

a legally enforceable agreement between two or more people

A

contract

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

list some common legal agreements…

A

1) credit accounts
2) mortgage loans
3) rental agreements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

unwritten agreements, often called ______ ______, are created by the actions or conduct of someone

A

implied contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

anything of value exchanged as part of a contract

A

consideration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

when one person makes an offer and another person changes is, the second person is making a _______

A

counteroffer

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

has legal agreement when a valid offer is made and accepted

A

contract

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

list the elements of an enforceable contract…

A

1) agreement
2) consideration
3) contractual capacity
4) legality
5) genuine assent
6) legal form

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

the person who creates and signs a promissory note

A

the maker

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

when a document is ______, the signature is verified by a notary public (something is signed in public where people can see)

17
Q

persons who are legally able to give sane and intelligent consent and are legally capable of entering into contracts

A

competent negotiable parties

18
Q

a document that is a written order to release or issue money, the most common of which is a check

A

instrument

19
Q

when income exceeds expenses, the difference is called _____ _____

A

cash surplus

20
Q

when you subtract your debts from the total amount of things you own, the difference is known as _____ (what u own minus what you owe)

21
Q

amounts of money owed to others, also known as debts

A

liabilities

22
Q

items of value that a person owns

23
Q

a person who promises to pay the debt of another person

24
Q

a statement about a product’s quality or performance that the seller assures the buyer are true (also called a guarantee)

25
a computer program that organizes data for easy search and retrieval
database
26
all money you own is either.....
saved, spent, or invested
27
money you have to spend as you wish--after all required taxes and deductions
disposable income
28
an orderly program for spending, saving, and investing the money you receive
financial plan
29
the person to whom a negotiable instrument is made payable
payee
30
the word ____ means legally collectible
negotiable
31
program that organizes data in columns and rows and performs calculations using the data
spreadsheet
32
ability to understand and enter into a contract ex. have to be 18 yrs. old
contractual capacity
33
used for insurance claim, warranty
personal property records
34
warranties written in writing
written warranties
35
non-written warranties
implied warranties
36
anything less than a full warranty, & nothing to do with time
limited warranty
37
ex. monthly cell phone bill, when you pay for each piece of paper to be printed
service contract
38
list three things of a good filing system...
1) folders 2) labels 3) file cabinets
39
list the advantages of electronic record keeping (computerized systems):
1--ease of updating information 2---ease of record storage and retrieval 3--speed of making new computations and comparisons