Topic 2 Flashcards
1
Q
What are the type of assets someone can own
A
near cash
investment assets
personal use assets
2
Q
What are the type of liabilities?
A
short term
long term
3
Q
What are the two key financial statements?
A
statement of net worth
statement of cash flow
4
Q
What are the categories for cash outflows?
A
personal
family
household
general
5
Q
What are the main categories of financial ratios
A
liquidity
savings
debt
6
Q
What are the liquidity ratios?
A
liquidity ratio
liquid assets to net worth
investment assets to net worth
solvency
7
Q
What are the debt ratio
A
debt to asset ratio
debt service ratio
non-mortgage debt service ratio
8
Q
What are the steps in preparing a cash budget?
A
estimate income
estimate expenditure
finalise the cash budget
